NEW YORK (Dow Jones)--Broad-based commodities selling pushed ICE Futures U.S. world raw sugar lower in range Friday. March sugar settled 33 points lower at 22.43 cents a pound and down 1.66% for the week. The May contract settled down 29 points at 21.45.
Sugar traded near unchanged in early dealings as futures continued to backed off of the high end of their recent trading range. Futures have been consolidating off of 28-year highs last hit Sept. 1 on forecasts for tight world supplies. Bullishness from forecasts for No. 2 producer India's second-consecutive supply deficit met rain that slowed harvest in No. 1 producer Brazil. Sugar prices have fallen 14.5% from that high, but continue in a relatively higher range.
Selling in sugar kicked as commodities weakened on the release of U.S. October jobs data that showed unemployment at a 26-year high.
"The markets are feeling a little bit of the sting of profit taking and long liquidation from unemployment," said Sterling Smith, market analyst at Country Hedging in St. Paul, Minn.
Crude oil and agricultural commodities such as coffee and cotton also suffered losses.
March futures settled just below a technical chart support level at 22.45, said a New York-based sugar broker/analyst.
The market is range-bound from roughly 22-24 cents, he said.
ICE world sugar open interest – the number of active positions left at the end of the session - increased by 405 lots Thursday to total 782,883, ICE reports.
Sugar volume for the session to the settlement was estimated at 69,958 lots, according to exchange data. In options, approximately 65 calls and 11 puts traded.
ICE Change Range Liffe Change
Mar 22.43 dn 33 21.90-22.66 Mar 590.30 dn 6.90
May 21.45 dn 29 23.20-23.84 May 584.30 dn 6.70
-By Holly Henschen, Dow Jones Newswires; 212-416-2138; holly.henschen@dowjones.com
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(END) Dow Jones Newswires
11-06-09 1432ET
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