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CSCE sugar ends mixed, storm sidelines some locals

NEW YORK: CSCE sugar futures closed mixed Tuesday in a thinly traded session caused partly by some day traders being sidelined by a storm which dumped a couple of inches of snow on the New York Metropolitan area during the height of the morning commute.

Key March settled up a marginal 0.03 cent at 5.32 cents a lb after moving in a narrow 10-point range of 5.40-5.30 cents. In the two previous sessions, the contract tumbled 0.27 cent, or 4.85 percent, as benchmark sugar equalled the eight month low set last Jan 18 when it settled at 5.29 cents.

May came off a negligible 0.01 to end at 5.50 cents. The rest went out 0.02 cent easier to unchanged.

Local shortcovering at the onset of business gave sugar a mild boost but trade and producer sales capped the market, brokers said.

March then spent most of the session hovering near 5.35 cents. A late flurry of trade selling eventually shoved the back months into negative territory.

"It (sugar) maintained a steady tone, but just didn't go anywhere," a broker for an investment house here said.

"I think everybody was just evening up their positions near the close," a floor dealer added. "We got some trade selling late, but that was it."

Dealers said the heavy snow storm which struck at the height of the morning commute likely trimmed the number of day players in the market.

"We might have lost some locals because of the snow," one said.

Another dealer added: "I think a couple of guys had trouble getting in."

Analysts said the technical and fundamental outlook of the market remains poor and chances are high benchmark sugar will ease to the psychologically important 5.00 cents mark.

"It's hard not to think that it's not going lower," one technician said.

The 292,000 tonnes of Thai quota B sugar set to be auctioned on Thursday, Jan. 27, continued to hang heavily on market sentiment.

Market players are also worried about a possible increase in sugar import duties by top importer Russia.

Technically, the overhead gap in March sugar of 5.62-5.65 cents represents resistance for the market. Support should be found at 5.20 and all the way down to 5.00 cents.

Estimated volume reached 18,903 lots against Monday's estimated tally of 18,244 contracts.

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