Raw sugar futures slipped in early dealings Thursday on liquidation linked to switch trade and speculative sales as the market eyed options expiration in the spot March contract this week, brokers said.
ICE Futures electronic March sugar contract eased 0.10 cent to trade at 12.01 cents per lb at 9:25 am EST (1425 GMT), in deals running from 11.97 to 12.17 cents.
"You probably had some specs lightening up and liquidation out of the switch. But you've got options (expiration) tomorrow so people just want to keep (the March contract) near 12 (cents)," a financial house floor dealer said. On switch trade, open interest in the March contract stood at 377,338 lots as of February 5, down 7,248 lots from the previous session.
Trading volume Thursday in the electronic March sugar contract was at 10,111 lots at 9:27 am. Total open-outcry volume at 9 am was at 487 lots. Open-outcry volume on Wednesday reached 12,642 lots and screen trade was at 140,717 lots, exchange data showed.