NEW YORK, Feb 16: CSCE sugar futures hardly moved on Friday, amid continued spreading and adjustments before a three-day holiday weekend, dealers said.

US financial markets will be closed on Monday in observance of Presidents Day.

March raw sugar settled 0.01 cent lower at 6.25 cents a lb, trading from 6.22 to 6.34 as it consolidated the move to a contract low at 5.90 cents at the beginning of the week.

May was unchanged at 5.62 cents and July went down 0.06 to 5.13 a lb, above a new contract low at 5.12 cents.

March raws have been supported since Monday as shorts covered or rolled out before the contract expires at the end of the month.

There seemed be some trade buying in the May-July spread and fund rollovers in March-May, said Mike McDougall, vice president on the Brazil Desk at FIMAT USA Inc.

Other than spread activity, the market was kind of quiet, McDougall said, adding that there was origin selling against the March contract above 6.30 cents.

Dealers are worried about absorbing a massive crop from Brazil, which starts to harvest in April. But deliveries from Brazil are more likely against May and not a current obstacle for the nearby raws.

But, with Thailand already harvesting, there seems little chance of March retesting the highs at 8.05 set early in January before the contract goes into delivery.

The market is forecasting a 270-million-ton to 285-million-ton crop from Brazil’s center-south, which produces the bulk of the country’s sugar. Such a harvest would dwarf last season’s output of 240 million tons.

Resistance in March sugar is pegged at 6.35 cents, then 6.50. Support was seen at 6.00, followed by 5.90, and then 5.75 cents. In London, front LIFFE May sugar rose $1.10 cents to $213.60 a ton.

May sugar closed 0.05 higher at 20.75 cents. July was flat at 20.95 cents a lb. The rest were from down 0.03 to up 0.43 cent.—Reuters