CSCE raw sugar futures ended firmer Wednesday on speculative fund buying, but producer sales capped the advance, although fund accounts may mount another probe of higher ground this week, brokers said.
CSCE July sugar rose 0.16 cent to close at 6.91 cents a lb, dealing between 6.75 and 6.99 cents. October gained 0.17 cent to 7.19 cents. Back months gained 0.13 to 0.16 cent.
Wave after wave of fund buying and automatic buy orders once July pierced the double top of 6.80 cents stoked the rally in sugar during early business, floor sources said.
Fundamentally, the International Sugar Organisation said Wednesday early indications were for a deficit of 2.0 to 2.5 million tonnes in the next crop cycle starting in September.
Technicians feel resistance in July would be at 7.00/05 and then 7.24 cents. They said support should be at 6.80, then in layers down to 6.50 cents.
Final estimated volume was at 71,307 contracts, up from the previous count of 28,112 lots. Call option volume was 10,725 lots and put volume was at 7,344 lots. Open interest in the No 11 sugar market rose 1,897 lots to 265,389 lots as of May 25.
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