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CSCE world

sugar ends

firmer on

NEW YORK: CSCE world sugar futures ended broadly firmer Monday on steady fund buying, with industry-led selling capping the upside momentum, market sources said.

October delivery rose 0.24 cent a lb, to 10.94, settling a notch below its intraday high of 10.95. December climbed 0.18 cent, to 10.49 cents, while the remaining months firmed between 0.12 and 0.18 cent.

Fund buying was the driving force behind today's gains, dealers said, as speculators reacted to the latest CFTC commitment of traders report showing a net short non-commercial position. Traders cautioned, however, that the balance of open positions had likely shifted to net long after today's rally, leaving little additional room to the upside.

"There is still more short buying that has to be done, but they're starting to swing to the longside," said a trader, who put the market's nearby ceiling at 11.05 for October.

In the physical market, news Morocco had issued a fresh tender to buy 14,000 tonnes raw sugar, for arrival October 20-31, was seen as supportive, while scale-up producer selling, especially on the March 1996 position, limited today's gains, dealers said.

Volume was estimated at a total of 18,130 lots.-Reuter