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CSCE May world sugar ends sharply up in correction

NEW YORK: CSCE world sugar settled sharply higher Wednesday in the nearby May contract, in what traders termed a technical retracement of the steady losses of the past two weeks.

The active May futures have fallen steadily since March 20, losing 0.94 cent a lb or more than seven percent.

May sugar ended 0.23 cent a lb higher at 11.77 cents, traded from 11.82 to 11.57 cents. July settled up 0.09 at 10.99 cents, while the remaining months ended 0.04 to 0.01 firmer.

Traders saw no fundamental news driving the market today, noting there has been little physical offtake in recent days.

"When you boil it down, it's all about May," one dealer said of today's rally. "And it's not about demand, it's a paper game."

The trader said that the May contract's ability to hold steady Tuesday despite a break below the key 11.50-cent level sent a positive signal for today's trade.

Traders expect the market to continue to move higher and attempt to fill a chart gap between 11.94 and 12.05, formed during a selloff on March 26. The May/July spread widened to 0.78 cent, compared with 0.64 cent at Tuesday's close.-Reuter