Raw sugar futures settled at a near-three-week high Friday on trade and speculative buying on the back of news of a huge Malaysian physical purchase, dealers said. The New York Board of Trade's July raw sugar contract climbed 0.06 cent to 8.59 cents a lb, which was its highest close since May 2, after trading from 8.50 to 8.62 cents. Buying by commercial players and small investors and brokers continued for a second day in sugar as traders digested reports of the large physical order for raws. "The trade was buying it earlier, and the specs now are starting to take the market up too," a New York floor trader said.
Scale-up trade selling and producer sales capped gains. But traders felt the market looked strong technically with end-user buying and improved technicals after raw vaulted 8.50 cents resistance Thursday.
Investment funds are still heavily short in sugar, though, and traders saw plenty of room for short covering.
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