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CSCE sugar ends up on spreads in lifeless trade

NEW YORK: CSCE sugar futures remained stuck in a range as it settled with minor gains Friday, buoyed mainly by trade buying of spreads in a lackluster session.

"What a waste of time," a veteran floor broker said. "Too much sugar is weighing on the market every time it tries to lift up."

May sugar SBKO inched up 0.09 to finish at 5.05 cents a lb, just a hair under the session peak of 5.06. The intra-day low stood at 4.96 cents.

July SBN0 rose 0.06 to 5.28, October gained 0.03 to 5.70 cents and the rest were 0.04 cent firmer each.

The modest spread purchases inspired by the trade was not enough to overcome steady origin pricing sitting above the market, floor sources said.

With offtake from destinations like leading importer Russia nonexistent and ample amounts of sugar being held by top exporter Brazil, Thailand and others, futures continued to stay in a rut where it will likely stay for a while.

"We have too much sugar around and not nearly enough offtake which is never good for this market," a dealer said.

Analysts said the market should firm up over the short term since funds remained short.

"Patience, patience. One of these days, we're going to rally. It's just going to need some time though," one said.

The only tidbit of physical news the market saw was that Syria bought 13,000 tonnes of whites at $203 a tonne C&F for March 20 to April 20 delivery.

Chartists feel near-term support in May sugar should be at 4.90 and then the contract low of 4.84 cents. If it breaks down below that mark, a move toward 4.50 cents will likely happen, they said.

Resistance was currently pegged at 5.20 cents, followed by the 20-day moving average currently sitting at 5.31 cents.

Estimated volume reached 13,510 lots, against the previous estimated volume of 21,978 lots.

Call volume touched an estimated 2,358 lots while put volume hit an estimated 6,033 lots.

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