London's coffee market closed up on Wednesday after getting a late-afternoon boost from New York, where arabicas rose sharply for the fourth consecutive session, dealers said. Liffe July opened $10 down on Tuesday, trading below the 5-1/4-year peak of $1,175 registered ahead of the close registered on Tuesday as speculators and producers banked profits. However, a firmer New York saw the London shrug off those losses as the contract climbed back to make a fresh peak at $1,182 and a new contract high. It was also the strongest for a second-month position since January 2002.
It closed at $1,177 a tonne, up $2 on 5,078 lots. "There was more business done in the afternoon after New York (opened)," said a trader. Second most-active September rose $4 to settle at $1,204 on 4,049 lots. The July/September spread widened to around a $30 discount from $25-26 on Tuesday.
COCOA STEADIES: London cocoa futures closed steady and stuck in a range on Wednesday, with structural trades accounting for much of the volume, traders said.
Front-month July settled down one pound at 818 pounds a tonne in volume of 3,248 lots, having traded in a 825-814 range.
September concluded up one pound at 831 in volume of 1,751 lots, after moving from 838 to 827 pounds.
"The market remains in a trading range after some false moves to the upside and downside. It doesn't seem to want to trend at the moment," one trader said.
Traders said much of the activity had centred on July-September spreads.
SUGAR ENDS UP: London white sugar futures closed higher on arbitrage on Wednesday, and dealers noted active trade in the August-October spread.
Front-month August settled up $1.60 at $245.80 a tonne in modest volume of 2,103 lots, having traded from $246.60 to $243.70.
October ended up $2.10 at $243.10 in volume of 1,649 lots after moving from $244.10 to $240.80.
"There has been good buying of October-October at a premium of $50," one trader said, referring to arbitrage between the London white sugar and New York raw sugar futures markets.
Comments
Comments are closed.