London sugar firms

London white sugar futures closed higher on renewed speculative and fund buying as the market showed signs of resuming its rise after recent consolidation, dealers said.
August finished up $4.60 at the day's high of $474.00 a tonne while October ended $4.30 higher at $470.00. Total volume was 8,804 lots. "We've seen spec and fund buying. They have come back into the market. Sugar is still looking very good," one dealer said.
A sharp rise in oil prices was also supportive. Strong energy prices boost demand for cane-derived ethanol biofuel. The European Commission has agreed a special preferential quota for zero-duty raw sugar imports at 1.31 million tonnes, white value, for the 2006/07 marketing year, the EU's Official Journal said on Friday.
COCOA SLIGHTLY UP: London cocoa futures closed slightly higher on Friday as the market was dominated by currency-related trade and continued to consolidate after climbing sharply at the beginning of the week, dealers said.
Benchmark July closed up one pound at 886 pounds a tonne after moving between 894 and 883 pounds. The May contract finished up five pounds at 887.
Total volume was thin at 5,988 lots. Dealers noted arbitrage selling in London as the New York market strengthened on the weakness of the dollar.
"There's also some origin selling around, which is keeping a lid on the market," a trader said. Prices rose sharply on Monday and Tuesday, climbing to a 20-day peak, but the rally lost momentum on Wednesday and had a further setback on Thursday.
European physical cocoa buying was generally restrained this week as many buyers were hoping for London price falls, traders said.
Rains in Ivory Coast's main growing regions were heavy enough to help ripen cocoa pods in late April, keeping the world's top producer on track for a strong April-September mid-crop, farmers said.
COFFEE SOARS: Liffe robusta coffee futures closed higher on Friday as funds continued to build up long positions, dealers said. Benchmark July robusta ended up $26 at $1,217 a tonne, while May ended up $19 at $1,189.
Switches accounted for a large amount of total volume, which stood at 34,175 lots.
"Large fund (long) positions have not liquidated, if anything they were buyers this afternoon," one trader said. He noted speculative selling earlier on in the day.
He saw resistance around the recent highs of $1,240, which the July contract touched on Tuesday. Europe's physical coffee market saw active trade in Brazilian beans this week after differentials fell, traders said. Prices of Tanzanian coffees were largely lower at this week's auction due to lower quality as the season draws to an end, traders said.