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CSCE sugar settles firm on trade, local buying

NEW YORK: CSCE raw sugar futures finished near the day's peak on Tuesday, propped up by brisk trade and local buying as the market turned around when a probe of support failed to generate follow-through selling.

"The presence of good trade and end-user buying caused locals to shortcover early. Some of the commercial buyers were then forced to pay up," Jim Cassidy, first vice-president of FIMAT Futures USA, said.

Key July sugar climbed 0.15 to end at 5.95 cents a lb, just a hair beneath the session high of 5.96. The intra-day low stood at 5.75 cents.

Spot May sugar gained 0.11 to 5.97 cents.

October went up 0.13 to 6.18 cents. Back months were up from 0.12 to 0.07 cent.

Sugar dipped to its lows at the start, but quickly ran into support and headed north, floor sources and brokers said.

When the selling pressure evaporated and the market managed to hold above unchanged, it sucked in trade and local buying.

"It (sugar) was stimulated by good underlying support," said Cassidy.

Traders said locals accounted for the early rise and commission houses sustained the market's advance.

"We had producer pricing every point past 5.90 (in July), but it could not stem the rise," one said.

Steady physical activity also underpinned the market's inroads to higher ground, dealers said.

In Colombo, trade sources said Sri Lanka has bought 12,500 tonnes of refined white crystal sugar from brokers Czarnikow Sugar at $216.20 a tonne C&F for first half June arrival.

Russian buying has been a constant feature while other end users like the Philippines was said to be making inquiries for the sweetener.

Analysts said they feel near-term resistance in July sugar is at 6.00 and followed by 6.06 cents. Support should emerge at the session low of 5.75 cents and then 5.64 cents.

Estimated final volume reached 24,773 lots against the previous estimated volume of 16,391 lots.

Call volume hit an estimated 3,995 lots while put volume reached an estimated 4,568 lots.

The CSCE is a subsidiary of the New York Board of Trade.-Reuters