Raw sugar futures in New York finished mixed on Friday and the lacklustre tone of the market may cause values to drift during the holiday-shortened trading sessions of next week, brokers said. The sugar market will be shut next on Thursday and Friday, November 22 and 23, for Thanksgiving.
Trading resumes on Monday, November 26. ICE Futures March electronic sugar contract was down 0.05 cent to 9.85 cents per lb at 1:23 pm EST (1823 GMT), in a band from 9.81 to 9.95 cents. The March open-outcry sugar contract fell 0.06 cent to end at 9.84 cents per lb, trading 9.82 to 9.94 cents.
May was flat at 10.14 cents. One contract aside, the rest gained 0.01 to 0.05 cent. James Cordier, an analyst for Liberty Trading Group in Florida, said the March contract might take another stab at the 10 cents area. 'When that happens, "we'll probably see more producer selling again," especially from India, Cordier said.
Sugar popped higher to its session high at the onset of trade, but speculative fund pressure capped the market and values gradually eroded the rest of the day, dealers said. "The locals just kept grinding it down and I just don't see a lot of action next week with all those holidays coming up," a dealer for a financial house said. Technicians feel support in the March contract was at 9.83 and 9.50 cents, with resistance at 10.22 and 10.25 cents.
Open-outcry volume around noon was at 5,085 lots, versus the prior tally of 7,337 lots. Call volume reached 6,053 lots while puts hit 5,489 lots. Screen trade on Thursday was 58,698 lots and total volume reached 66,035 lots. Open interest in the No 11 sugar market dropped 1,944 lots to 758,271 lots as of November 15. Screen volume traded on Thursday reached 42 lots while no lots were traded in the pit, the exchange said.