According to traders sugar futures roared higher on trade short covering with sellers reluctant to come forward because they expected higher prices. Only some 300 lots were traded outright out of the 4,764 turnover by 1045 GMT with the vast majority consisting of spreads which pushed Aug/Oct to a $ 3 premium, from 20 cents at Tuesday’s close. "The market’s feeding on a vacuum of sellers,"said a trader, adding that there was no sign of an end to the rally. Front August broke resistance at $ 246.20 to last trade at the morning’s high of $ 247.50, up $7.60 from Tuesday – the highest first position level since January 18, ’99, when it touched $ 248. The new centre south cane crop would be more than 20% lower than last season due to prolonged drought in Brazil. |
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