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  • Feb 20th, 2005
  • Comments Off on New York sugar down on switches and trade sales
Raw sugar futures finished softer on Friday on sales from trade accounts and switch trade as investors moved their positions out of the spot month ahead of a holiday weekend, analysts said. The raw sugar market will be closed on Monday for the US Presidents Day holiday. Trading resumes on Tuesday. The New York Board of Trade's March raw sugar contract fell 0.08 cent to end at the day's low of 8.85 cents a lb., with the session high at 8.95 cents. May sugar lost 0.09 to 9.21 cents. The rest shed 0.01 to 0.08 cent.

The market's fundamental outlook longer-term is bullish due to a supply shortage and steady consumer buying over the coming months from countries like India and Pakistan, analysts said.

But that was not the focus in Friday's market.

"Primarily, the roll is going on and that is weighing on the market," said James Cordier of Liberty Trading Group.

The open interest in March fell 6,693 lots to 41,191 contracts as of February 17.

"We're getting an orderly rollout of March. There are a few sessions left, so it should become less of a factor by the end of next week," a trading house broker said. Sugar slipped due to pressure from speculators and trade accounts, dealers said. The pace of consumer buying, which has been red hot recently, has also slowed down and put values on the defensive.

Technicians see resistance in the March contract at 8.98 and 9.03 cents. Support was at 8.80 and down to 8.50 cents.

Volume traded just before the market closed for the day stood at 32,940 lots, versus the prior 41,857 lots. Call volume hit 3,569 lots and puts came to 2,556 contracts. Open interest in the No. 11 sugar market fell 216 lots to 381,968 contracts as of February 17. Ethanol futures finished flat, with the February contract closing at 95 cents a gallon.

US domestic sugar futures ended mixed Friday. May rose 0.01 cent to 20.35 cents a lb. while July shed 0.01 to 20.61 cents. Except for two contracts, the rest were flat.

Volume traded before the market shut hit 37 lots, from 1,019 lots previously.

Copyright Reuters, 2005


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