Raw sugar futures ended little changed on Friday as the market continued to dawdle in its recent range after failing to sustain gains through key chart points, traders said. We managed to break above the $9.70 level, but there was nothing behind it and we came right back off. It's the last day of a shortened holiday week and business is Very light.
The New York Board of Trade's benchmark October sugar contract closed down 0.01 cent at 9.54 cents per lb, closer to the bottom of its trading band of 9.47 to 9.78 cents. The rest of the board closed flat to up 0.04 cent. The IntercontinentalExchange's NYBOT electronic market for sugar showed the October contract up 0.03 cent at 9.58 cents at 1:43 pm. Final open-outcry volume was estimated at 3,978 lots, compared with the previous open-outcry tally of 3,896 lots.
Call volume hit 11,066 lots and puts reached 7,289 lots. NYBOT said on Thursday's screen trade were 54,947 lots and total volume was 58,843 lots. Open interest in the No 11 raw sugar market fell 755 lots to 652,613 lots as of July 5. Producer selling continued at the top of the range near 9.80 cents, keeping the sweetener locked in a wide range of 40 to 60 points, analysts said.
"Origin selling is still capping the market, but, on the other hand, the emphasis on ethanol production within Brazil over sugar production is at least curbing the potential amount of sugar Brazil can throw at the world market," Michael McDougall, senior vice president of the Brazil desk at FIMAT USA Inc, said in a daily market comment.