Raw sugar futures closed higher Wednesday on all-around buying as the market extended its rally, with bullish fundamentals enabling it to take aim at a 29-year hit last week, brokers said. The March raw sugar contract went up 0.68 cent or 2.48 percent to settle at 28.04 cents per lb.
The contract moved from 27.40 to 28.28 cents. Volume in March reached 50,580 lots at 1:57 pm EST (1857 GMT). On Monday, raw sugar futures suffered their biggest one-day fall since November as the market retreated from a 29-year peak of 28.95 cents set last week. The issue is not whether raw sugar prices can reach 30 cents, he said.
"The question is when we get to 30." Investment funds which booked profits when the market fell have now piled back in - analysts. The fundamentals have lined up behind sugar, they added. There was talk of dry weather in the Brazilian north-east cane crop, some brokers said. Supplies are tight and demand strong.
Underscoring demand was news that Farm Minister Sharad Pawar said No 1 sugar consumer India has extended the deadline for duty free imports of white sugar to December 31. Pakistan said it will scrap taxes on the import of 700,000 tonnes of white sugar through the private sector to meet shortages and keep prices in check.
The Philippines said it plans to import up to 150,000 tonnes of raw sugar between April and July to build buffer stocks and meet an export quota to the US. Technicians peg support in the March contract at 27 and 26.90 cents, with resistance at 28.95 cents. Total volume Tuesday reached 146,180 lots, compared with the previous session's 112,961 lots - ICE data. Open interest in the No 11 sugar market stood at 840,620 lots as of January 12, versus the previous 834,837 contracts - exchange data.