Raw sugar futures closed lower Monday on late investor sales as the dollar rose and worries over the deepening economic slowdown depressed sentiment, traders said. The key March raw sugar contract dropped 0.58 cent, or 4.81 percent, to finish at 11.47 cents per lb. Trades ranged from 11.45 to 12.11 cents.
Volume traded in the March contract reached 49,613 lots at 2:01 pm EST (1901 GMT). May sugar slid 0.53 cent to close at 11.97 cents. Jack Scoville, vice president for brokers the Price Group in Chicago, said further advances in sugar seem to be in the cards.
A recent truckers' strike in major consumer India which disrupted supplies, and some consumer interest, should give the sweetener a boost, he said. "(This is a) pause for reflection," Scoville said. He added that sugar appears to be consolidating at this time and could grind higher in the days ahead. Sugar also faced pressure from investment funds rebalancing their portfolios at the start of the year.
Technical pressure in sugar was also caused by the failure to hold 12 cents basis March, according to traders. The dealers said resistance in the March sugar contract was at 12.05/07 cents and then up to 12.46 cents. They said support in the contract was at 11.92 and 11.60 cents.
Volume traded Friday in the No 11 sugar market reached 60,435 lots exchange data. Open interest for No 11 sugar market was at 667,727 lots as of January 9, from the previous tally of 665,472 lots. The domestic No 14 sugar market showed the March contract up 0.01 cent at 20.20 cents per lb at 2:03 pm volume on Friday in the No 14 market stood at 581 lots exchange data.