CSCE raw sugar futures ended higher on Friday on modest trade and fund buying, although a steady stream of producer sales trimmed the sweetener's advance, brokers said.
CSCE May sugar went up 0.09 cent to close at 6.69 cents a lb., moving from 6.54 to 6.74 cents. Active July gained the same to 6.97 cents, having traded between 6.79 and 7.03 cents.
The rest ranged from 0.11 cent firmer to 0.01 cent softer.
Mike McDougall, senior vice-president of FIMAT USA Inc, said origin sales above 7.00 cents, basis July, "kept the market in check."
Floor sources said trade purchases in the back months and then fund buying kept sugar buoyant, with brighter fundamentals in consumption outpacing production for 2004/05 lending positive backdrop to the market.
Switch business was again featured in sugar as players wound down positions in front May by rolling them into the back months.
Open interest in may fell 8,944 lots to 52,705 lots as of April 15 while interest in July rose 9,295 to 126,559 lots.
The rollovers will likely stay as a top feature in the sugar pit until May expires on April 30.
Analysts said the firmer tone of the market was also in anticipation that China and India would import sugar later in the year.
"We'd want to see concrete demand in the form of done deals because we've been talking about this for a long time," one said. Technicians said resistance in May would be at 6.80 cents, followed by 7.00 cents. Support was at 6.49 cents, then down to the area of 6.05 and 5.95 cents.
Final traded volume hit 45,617 lots, from the prior tally of 53,478 lots. Call volume reached 7,279 lots while puts stood at 3,290 lots. Open interest in the No. 11 sugar market rose 2,317 lots to 275,825 lots as of April 15. US domestic sugar futures ended mixed on Friday.
July sugar rose 0.01 to 20.90 cents a lb. while September was unchanged at 21.04 cents. Except for one contract, the rest were flat to 0.05 cent firmer. Final estimated volume fell to only 40 lots from 758 lots previously.
The CSCE is a subsidiary of the New York Board of Trade.