London white sugar futures closed firmer on speculative buying on Tuesday after a dull session due to the absence of the US market for Independence Day, traders said. Benchmark August finished up $2.90 at $472 per tonne in volume of 2,491 lots after trading from $472 to $469.40.
October settled up $2.40 at $469.70 in volume of 1,752 lots, having moved from $470.50 to $468.10. Traders referred to fund and speculative buying early in the session, but said momentum slowed in the afternoon. "The funds bought early on, but the market has been very quiet due to the US holiday," one trader said. Other traders referred to modest spread and speculative buying, but said the market lacked dynamism due to the US holiday.
Sugar beet processor Associated British Foods Plc said on Tuesday it would close two of its six UK sugar beet refineries with the loss of 200 jobs to boost efficiency as EU sugar reform started to cut sugar prices.
COCOA MAKES MARGINAL LOSS: London cocoa futures ended off recent highs on Tuesday but speculative and fund buying held the market above the session's lows, dealers said. The benchmark September contract fell 3 pounds, or 0.3 percent, to 968 pounds a tonne after trading between 979 and 951 pounds. Total volume was 10,758 lots.
The second-month contract hit a fresh 15-month high on new fund buying on Monday, when it settled up 13 pounds at 971. It hit 1,010 in March 2005. "There was some light trade buying which came into the market," one dealer said, adding trade sellers did not want the market to weaken too much.
Dealers said cocoa fell earlier on trade selling and a drop in speculative buying, which had pushed the market up in recent sessions. The second-month contract has risen about 8 percent since June 20, when it was trading at around 907 pounds.
Spot July slipped 2 pounds to end at 1,027, while its premium to September remained near the higher end of a recent range at about 60 pounds. It was at about 62 on Monday. Farmgate prices in Ivory Coast's cocoa growing regions were mixed from June 26 to 30, Coffee and Cocoa Bourse (BCC) data showed, as impassable roads meant fewer buyers ventured into the bush for beans.
COFFEE CLIMBS: London robusta coffee futures hit fresh five-month highs on speculator and fund buying on Tuesday after profit-taking had hit the market earlier in the session, dealers said.
The benchmark September contract settled up $16, or 1.2 percent, at $1,304 a tonne after trading between $1,305 and $1,269. Total volume was 15,529 lots. "The interest came back into the market...The buying was from specs, funds and a bit of trade," one dealer said.
Dealers said market weakness earlier was due to profit-taking and producer selling.
The second-month contract, which was trading at around $1,318 on February 3, has risen by about 13 percent since June 27. A cold front is expected to bring rain to Brazil's coffee areas this weekend.
Comments
Comments are closed.