Raw sugar futures finished marginally higher on Wednesday in see-saw business and brokers said the market should stay range-bound amid slack investor and consumer interest. The key March raw sugar contract went up 0.06 cent to conclude at 11.73 cents per lb. Trading from 11.52 to 11.84 cents.
Volume traded in the March contract reached 35,395 lots at 2:01 pm EST (1901 GMT). May sugar rose 0.07 cent to 12.28 cents. "It's locked in a range," said Jack Scoville, vice-president of brokers the Price Group in Chicago. Market edged up in early trade, but attempts to go past 11.84 cents, basis March, soon ran out of gas, dealers said.
Some analysts said the fundamental outlook for sugar longer-term seems to be improving. They point to a tighter supply picture going into 2009, and the possibility consumer interest may begin perking up. For now though, the March contract seems pinned between 11.40 and 12.05-07 cents.
"A close below 11.40 would confirm failure to continue above 12.00, whereas a close above 12.07 would complete the bull flag pattern," said Veronique Lashinski of newedgegroup.com Technicians see support in March at 11.40 and a double bottom near 10.50 cents, with resistance at 12.05-07 cents.
Volume traded Tuesday in the No 11 sugar market at 47,023 lots exchange data. Open interest for No 11 sugar market was at 641,129 lots as of December 16, from the previous 641,974 lots ICE data. The domestic No 14 sugar market showed the March contract untraded at 2:02 pm volume done Tuesday in the No 14 market reached 224 lots, the exchange said.