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CSCE world sugar rallies at midday on fund buying

NEW YORK: CSCE world sugar futures were sharply higher toward midsession, with spot October posting strong gains on the back of fund buying, dealers said.

Trade houses were good sellers early on, but speculators stepped back in to buy after October steadied above support at 11.20-11.25.

October was up 0.21 cent a lb as of 1135 EDT, to 11.55 cents, heightening its premium to second-month March by five points, to 0.76 cent. October posted trades from 11.25 to 11.57. Resistance was seen near last week's high of 11.65.

Today's rally was primarily technically-driven, dealers said, but physical demand improved slightly today.

Syria picked up 13,000 tonnes white sugar from French trade house Jean Lion, at $396 per tonne. Pakistan also said it would consider importing sugar to counter inflated domestic prices.

A steady 11,015 lots had changed hands as of 1100 EDT.

-- Wendy Pollack, New York Commodities Desk +1 212 859 1640. -Reuter