Sugar finishes at nine-week high in New York

CSCE raw sugar futures ended Friday at a nine-week high on a steady fusillade of fund buying as rains in Brazil and perkier cash demand buoyed values heading into a holiday weekend, analysts said.
The raw sugar market is shut Monday for US Memorial Day. Trading resumes Tuesday.
CSCE July sugar jumped 0.17 cent to end at 7.06 cents a lb, moving between 6.86 and 7.07 cents. On a spot daily basis, it was the highest close for sugar since concluding at 7.15 cents on March 24. October added 0.15 to 7.32 cents. The rest rose 0.10 to 0.12 cent.
James Cordier, a broker for Liberty Trading Group, said the strong surge in values means the benchmark July contract "probably has a clear path" to get to the next targets of 7.20 and 7.25 cents.
An uptick in cash activity and rains in Brazil which have hindered harvesting of the country's center-south cane crop has buttressed the rally in the sweetener, dealers said.
Sugar slipped to its low for the day before the funds took over to charge remorselessly higher, floor sources said.
Once July raced past 7.00 cents, automatic buy orders were triggered to nudge the market higher. Solid selling from producers like Thailand and Brazil sought to cap sugar, brokers said.
"There was origin selling at every point from 6.90 (cents, basis July) on up," one said.
Technicians feel resistance in July would now be in the area of 7.20 to 7.25 cents. They said support should be at 7.00 and then 6.80 cents.
Final estimated volume was at 53,033 contracts, up from the previous count of 44,939 lots. Call option volume was 15,246 lots and put volume was at 7,544 lots. Open interest in the No. 11 sugar market rose 914 lots to 266,699 lots as of May 27.
Ethanol futures finished mixed. The spot June ethanol contract rose 1.00 cent to 80 cents a gallon. The rest were up 2.00 cent to 0.25 cent easier. Open interest in the ethanol market rose seven to 281 lots as of May 27. Thursday's trading volume hit 36 lots. US domestic sugar prices ended mixed Friday.
July sugar lost 0.08 cent to 20.30 cents a lb while September added 0.05 to 20.47 cents.
The rest ranged from 0.01 cent down to 0.05 cent firmer. Final traded volume was at 357 lots against the previous 596 lots.