Raw sugar futures settled lower Wednesday on investor profit-taking and pressure from the transfer of positions ahead of expiration in the spot month at the end of the month, brokers said. The May sugar contract fell 0.11 cent to finish at 13.14 cents per lb. On Monday, the contract ended at 13.32 cents in the highest close for sugar on a spot basis since March 23.
May's trading range was from 13.06 to 13.37 cents. July sugar also lost 0.11 cent to end at 13.56 cents. James Cordier, an analyst for brokers optionsellers.com in Florida, said sugar seems pinned between 13 and 14 cents. Traders said a move toward 14 and even 15 cents in sugar is possible going forward given the impetus provided by expectations of buying by India. Technicians put resistance in the May contract at 13.50 and 14 cents, with support at 13 and 12.50 cents.
Volume traded Tuesday in the No 11 sugar market was at 179,009 lots, from the prior 202,262 lots - the exchange said. Open interest for No 11 sugar market was at 691,100 lots as of April 14, from the previous 697,553 contracts - exchange data. The No 14 sugar contract showed the July contract down 0.06 cent at 21.59 cents at 2:13 pm volume on Tuesday, in the No 14 market was at 51 lots, against the previous 31 lots - exchange data.