Raw sugar prices closed at a three-week high Wednesday as consumer buying combined with investment fund short-covering to stoke the market's rally and more gains are likely in the days ahead, brokers said.
The New York Board of Trade's October raw sugar contract surged 0.82 cent, or by 7.1 percent, to finish at 12.37 cents per lb, dealing from 11.85 to 12.40 cents. It was the best close for sugar based on the spot charts since concluding at 12.41 cents on August 23.
March rose 0.73 to 13.29 cents. The rest increased 0.53 to 0.65 cent.
Open interest in the October contract slid 16,621 lots to 148,718 lots as of September 12 while interest in March climbed 13,034 to 203,836 lots.
Technicians see support for the October contract at 12 and 11.85 cents, with resistance at 12.50 and then 13 cents. Final volume reached around 131,193 lots, from the previous count of 94,748 lots. Call volume reached 7,556 lots and puts amounted to 9,497 lots. Open interest in the No 11 raw sugar market fell 3,054 to 510,361 lots as of September 12. The ethanol market was untraded.
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