Raw sugar futures rebounded to a higher close on Thursday as the US dollar reversed course and dropped, said traders who cited fund buying of the sweetener. The July raw sugar contract climbed 0.24 cent to close at 15.62 cents per lb. The contract traded from 15.11 to 15.65 cents. Volume traded in the July contract reached 40,241 lots. October sugar rose 0.24 cent to end at 16.56 cents.
Origin selling pressured raw sugar futures earlier but fund buying, amid the weakening US dollar, pushed thhe sweetener higher - traders. The sugar market moved sideways but within sight of the recent 2-3/4-year high reached May 5 at 16.03 cents per lb.
"I think that sugar prices could start to calm down and correct more severely. These prices are really attractive," - Shawn Hackett, a commodities strategist in Florida. The raw sugar futures market will trade regular hours Friday and will be closed Monday for the US Memorial Day holiday - ICE.
In London, the August white sugar contract rose $1.00 to close at $436.80 per tonne. Volume traded Wednesday in the No 11 sugar market was 124,730 lots, from the prior 115,758 lots - exchange data. Open interest in the No 11 sugar market was at 707,567 lots as of May 20, from the prior 708,649 contracts. The No 14 sugar contract showed the July contract closed up 0.07 cent at 21.92 cents. Volume on Wednesday in the No 14 domestic sugar market was at 873 lots, against the previous 76 lots.