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CSCE sugar ends mixed in range-bound, light trade

NEW YORK: CSCE sugar futures put in a mixed performance Thursday, with good trade selling offset by local shortcovering in thin, range-bound activities, traders said.

"The market is still waffling in this quiet range and I don't expect it to change," said Judith Ganes, soft analyst with Merrill Lynch.

March SBH0 closed off 0.04 cent at 5.77 cents per lb after trading 5.94 to 5.76 cents. May SBK0 eased 0.02 to 6.00 cents. July closed unchanged at 6.18 cents while back months ended 0.07 to 0.09 cent firmer.

"There is talk of 500,000 tonnes of sugar being lost in China, and that doesn't even excite the market because China has a vast surplus. It's not going to matter and is not going to encourage them to buy," Ganes said.

China's cane crop was hit by frost in December, and although sugar production may be reduced, the full impact of the damage was still unclear, traders said.

Dealers said the market was also driven by some commission, house, fund and local selling, ending the session a few points down.

Technicians said resistance in March should be at 5.92 and then 5.98 cents. Support should be at 5.75 and then 5.65 cents.

Estimated final volume reached 18,026 lots compared to Wednesday's official 11,118 lots. Call volume touched 2,632 lots while put volume was estimated at 1,340 lots.

In physical business, Brazil's centre-south should harvest up to 20 percent less cane in 2000/01 and envisages an accompanying slowdown in sugar exports, Sao Paulo Cane Agroindustry Union said.

European sugar traders started 2000 slowly while awaiting signs of purchases of raw sugar by Russia, the world's main importer.

Although Russian sugar beet production is higher than the previous year, imports are expected to remain substantial in 2000 but less than the estimated six million tonnes purchased in 1999.

Shipments would be made in the first half of the year when duties are low, traders said.

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