"It still looks bullish on a fundamental basis, on a technical basis," said Alex Oliveira, senior sugar analyst for brokers Newedge USA in New York. "There's no change in the trend so far," he said. Sugar prices will reach historic milestones by the end of March due to tight supplies and fund buying in the market, a Reuters poll showed. Sugar futures more than doubled in 2009. Rally continued in 2010 on strong demand and tight supplies.
Buying seen from India, Iraq and Indonesia. Pakistan, Egypt, Mexico, the Philippines, and US may also be buyers by spring. Rollover business in March contract seen next week. March expires February 26. Focus then will be on deliveries in March contract. Support in March seen at 28 and 27 cents. Resistance at 30.33 and 30.87 cents. Total volume Thursday 106,651 lots, compared with the previous 158,858 lots - ICE data. Open interest in the No 11 sugar market 855,798 lots as of January 28, up from prior 849,490 contracts - ICE.