CSCE raw sugar futures finished higher on Wednesday on speculative buying, but a further rise could easily be scuppered by solid producer sales in the market, dealers said.
March sugar went up 0.12 cent to close at 5.87 cents a lb, ranging between 5.73 and 5.90 cents. May add 0.09 to 6.05 cents.
Except for one contract, the rest ended flat. Judy Ganes of J.
Ganes Consulting said the steadier tone in sugar was accounted for by talk of buying by China or Indonesia, but she said the weight of bearish fundamentals would keep the sweetener "weak."
Sugar supplies remain plentiful, with top grower Brazil expecting another record cane crop in 2004/05.
While cash demand appears to have perked up somewhat, most analysts do not expect the buying to substantially dent the surplus in sugar.
Final estimated volume reached 38,517 lots, up from the previous 38,158 lots. Call volume was at 5,268 lots and puts stood at 3,000 lots.
Open interest in the No 11 sugar market rose 204 lots to 258,258 lots as of January 27. US domestic sugar futures ended mixed on Wednesday.
March sugar was flat at 20.60 cents a lb while May rose 0.01 to 20.55 cents. Except for three contracts, the rest settled unchanged.
Final traded volume hit 232 lots, down from 812 lots previously.
The CSCE is a subsidiary of the New York Board of Trade.