Raw sugar futures finished mixed in activity featuring last-minute tweaking of positions before the spot July contract expired on Thursday ahead of a long holiday weekend, traders said. The raw sugar market will be closed on Monday for the United States Independence Day holiday.
Trading resumes on Tuesday. The New York Board of Trade's active October sugar contract rose 0.05 cent to settle at 9.33 cents a lb., trading from 9.30 to a new contract high of 9.46 cents.
Spot July gained 0.15 to 9.34 cents. Except for two contracts, the rest retreated 0.01 to 0.03 cent.
Judy Ganes of commodity firm J. Ganes Consulting said there was "last-minute covering ahead of July expiration" in the market which gave the spot a month a powerful boost.
Floor sources said the market was trading n a narrow band until July exploded late as players scrambled to get out of positions in July, which still had a hefty open interest going into its last day of business.
Open interest in the July contract had plunged 11,280 lots to 15,810 contracts as of June 29. Dealers feel a total of 300,000 to 400,000 tonnes of sugar will likely be delivered against the tape in New York.
Traders said the market will likely drift going into the holiday and then look for direction after the break.
Fundamentally, analysts feel sustained consumer interest should buoy values while the supply/demand equation is seen coming up with a slight deficit.
Technicians put support in the October contract at 9.12 and 9.05 cents, with resistance at the new contract high of 9.46 cents. Estimated volume before the close of business hit 44,790 lots, from the prior tally of 49,776 lots.
Call volume stood at 8,571 lots and puts amounted to 2,879 lots. Open interest in the No 11 raw sugar market dove 6,275 lots to 378,927 contracts as of June 29. Ethanol futures finished steady, with the June ethanol contract closing at 117 cents a gallon. US domestic sugar futures ended mixed. September sank 0.22 cent to 22 cents a lb. while November shed 0.04 to 20.66 cents. Except for two contracts, the rest were flat. Volume before the close of business reached 608 lots, against the prior 1,307 contracts.
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