New York sugar futures close at three-week high

Raw sugar futures ended on Thursday at a three-week high on trade and speculative buying, with brokers saying the momentum from the surge could nudge the market higher in the days ahead. The New York Board of Trade's July raw sugar contract rose 0.20 cent to close at 9.13 cents per lb., moving from 9.01 to 9.23 cents.
On a spot basis, it is the highest close for sugar since June. The key October sugar contract added 0.13 to finish at 9.60 cents, in a band from 9.52 to 9.71 cents. The rest gained 0.11 to 0.22 cent. The Intercontinental Exchange's NYBOT electronic market for sugar showed the July contract up 0.19 cent to 9.12 cents at 1:24 pm.
"It is the first time (in a while) the charts look constructive," said James Corridor of brokers Liberty Trading Group. "It seems to have some legs here." He said importers who had been buying on a hand-to-mouth basis might step in to book some orders so they would not have to chase the market higher.
Excessive supplies from top producer Brazil and a large cane harvest in top consumer India cloud the longer-term outlook, analysts said. Futures popped higher from the onset of trade and only came off when some profit taking knocked the market back at the top of the range, they said. Some switch trade was being done from investors getting out of the spot contract before it expires next week. Open interest in the July contract fell 4,688 lots to 80,253 lots as of June 20. July goes off the board on June 29.
Technicians pegged support in the October contract at 9.20 and 9.00 cents, with resistance at 10 cents. Open-outcry volume around noon was at 12,729 lots, from the previous tally of 23,839 lots.
Call volume was 12,415 lots and puts 10,672 lots. NYBOT said on Wednesday's screen trade were 113,019 lots and total volume 136,858 lots. Open interest in the No 11 raw sugar market dropped 1,892 lots to 676,629 lots as of June 20. No deals were done in the ethanol market.
US domestic sugar prices ended lower. The September contract fell 0.02 to 21.48 cents per lb. while November lost the same to 21.04 cents. The rest shed 0.02 to 0.06 cent. Screen volume traded on Wednesday in the No 14 sugar market hit 134 lots and 786 lots were traded in the pit. The electronic No 14 sugar market saw the September contract 0.15 cent down at 21.35 cents at 1:26 pm.