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CSCE sugar finishes mixed ahead of 2000 rollover

NEW YORK: CSCE sugar futures closed mixed on Thursday in a range-bound market ahead of the New Year millennial holiday celebrations.

"It was a very quiet day. Nothing overly big has been happening to push it up or down," said Walter Spilka, analyst with Salomon Smith Barney. Salomon is a unit of financial services giant Citigroup C.N.

March sugar SBH0 came off a measly 0.02 to finish at 6.12 cents a lb, trading from 6.14-6.00 cents.

It has been a tough year for sugar prices, with benchmark futures touching a 14-year nadir of 3.93 cents last April 28 as the devaluation of Brazil's real spawned a tide of sugar exports from the world's biggest producer and exporter of the sweetener.

On the year, the key sugar price closed down 22.13 percent from its finish of 7.86 cents at the end of 1998.

The fall was made more notable by the fact benchmark sugar prices had plunged 49.91 percent since ending 1997 at 12.22 cents.

Second position May SBK0 shed 0.01 to end at 6.30 cents. July gained 0.01 to 6.44 cents while the rest were 0.04 cent firmer.

Sugar gapped to its session lows before slowly clawing its way back in lethargic dealings in front of the New Year holiday weekend, traders said.

The market is closed on Friday, Dec. 31, and will reopen for business on Monday, January 3.

The outlook for prices does not look encouraging when 2000 rolls around with sugar futures still struggling to overcome the weight of surplus stocks and unimpressive demand, the dealers added.

Technicians said they feel resistance in March sugar should be at 6.15 and then 6.20 cents. Support should be seen at 6.00 cents, followed by 5.95 cents.

Estimated volume reached 8,606 lots compared to the previous 17,620 lots. Call volume touched 766 lots while put volume was estimated at 509 lots.

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

In industry news, raw sugar imports by Russia, the world's top importer, may reach 6.0 million tonnes in 1999, against 3.67 million from last year, the country's Sugar Producers' Union said Thursday.

In India, the government raised the import duty on sugar to 40 percent from the current 27.5 percent, effective immediately to cut the inflow of cheap imports, the Consumer Affairs and Public Distribution Ministry said.-Reuters