March volume 52,997 lots at 1:54 pm EST (1854 GMT). Bull trend seen is very intact. Market still positioned to challenge the 30-cent area. Sugar dragged down midsession with other commodities, but investors took opportunity to buy back at lower price. Tight supplies, strong demand and unsated appetite by funds fuel bullishess.
Underscoring the demand side is news that Indonesia has only enough sugar stocks to last until mid-February and this would emphasise the need for imports. Moscow's Institute for Agricultural Market Studies (IKAR) said Russian raw sugar imports seen rising 66 percent to at least 2.4 million tonnes in 2010 after tariff cut.
The State Trading Corp of Pakistan issued tender to import 50,000 tonnes of white sugar. Mexico may need to import an additional 450,000 tonnes of sugar. Other buyers going forward would include the Middle East, the United States and the Philippines.
Technicians see support in the March contract at 28 and 27 cents, with resistance at 29.50 and 30 cents. Total volume Tuesday reached 127,437 lots, compared with the previous 60,660 lots - ICE data. Open interest in the No 11 sugar market stood at 839,354 lots as of January 19, versus the previous 834,018 contracts - exchange data.