Raw sugar futures closed higher on Friday as the market derived strength from other commodity markets and only modest deliveries were expected for the expiring October contract, analysts said. ICE Futures open-outcry March sugar settled up 0.05 cent at 10.15 cents per lb. after trading 9.98 to 10.17 cents.
It was almost an inside day when compared to Thursday's range of 9.98 to 10.31 cents. The October contract expired 0.26 cent lower at 9.56 cents after gyrating from 8.90 to 9.76 cents. Back months added 0.02 to 0.04 cent.
The March electronic sugar contract eased 0.01 cent to 10.09 cents at 2:17 pm EDT (1817 GMT), dealing from 9.98 to 10.17 cents. Steve Platt, an analyst for Archer Financial Services, said bulging Indian sugar stocks was a "source of concern" but had been offset by rallies in other commodity markets.
Traders pointed in particular to crude oil prices, where rising values are providing a temptation to sugar growers to divert more cane into the manufacture of the alternate fuel ethanol. Most of the swings of Friday involved the spot October contract, which went off the board at the close of trade.
Open interest in October sank 15,074 lots to 10,558 contracts as of September 27. Traders estimated deliveries in October around 1,000 to 2,000 lots by the close of Friday's business. "What we are hearing is about 1,000 lots or so. There are some sugars from Brazil and from Argentina," a dealer for a brokerage house said.
Technicians put resistance for March delivery at 10.25 and 10.50 cents, with support at 10 and 9.85 cents. Final estimated open-outcry volume stood at 8,371 lots, versus the prior tally of 13,906 lots. Call volume was 7,713 lots and put volume amounted to 5,975 contracts. Screen trades hit 131,719 lots and total volume on Thursday was 145,625 lots.