Raw sugar futures relied on late investment short-covering to finish higher Tuesday and the market is seen consolidating after its sharp sell-off in the prior session, brokers said. The benchmark October raw sugar contract gained 0.23 cent to end at 13.75 cents per lb, dealing from 13.26 to 13.83 cents. Volume traded in the October contract was at 53,631 lots at 2:02 pm EDT (1902 GMT).
"It held at the lows and then we came running back the other way," a financial house dealer said. "We may be erratic the next day or two, but we should start finding some equilibrium in here.
" Sugar futures tumbled in early business on follow-through investor fund sales, with a stronger dollar weighing on the market, dealers said. But the failure to extend market losses led to trade buying and then short-covering by investors which enabled the market to stage a rebound, they said. The domestic No 14 sugar market showed the September contract down 0.24 cent at 22.50 cents per lb at 2:05 pm. Volume traded Monday in the No 14 sugar market hit 688 lots, exchange data showed.