London sugar rises

London sugar futures finished at an one-week high due to arbitrage and trade buying against speculative selling on Monday, traders said. March settled up $5.60 at $351.50 per tonne in volume of 3,144 lots, after trading from $354.40 to $345.80.
May closed up $5.30 at $351.50 per tonne in volume of 1,044 lots, having moved from $353.10 to $346.20. Traders noted arbitrage activity that widened the March-March spread to $93-94 from $90, and said trade selling against trade buying featured.
"There was spec selling on the opening of New York and London, and trade buying, including possible Russian buying in New York," one trader said.
Traders said weekend offtake in whites from buyers in the Middle East was possible and may have contributed to the positive tone in the white sugar futures market.
Traders said the weak dollar was also giving support to London sugar futures.
Sterling hit a two-year high against a pressured dollar on Monday and held steady against the euro. Traders expressed mixed views about the short- and medium-term outlook for the whites premium.
COCOA WEAKER: London cocoa futures finished weaker on Monday due to fund selling and light hedging against industry support, traders said.
December settled down nine pounds or 1.11 percent to 801 pounds in volume of 2,576 lots, after trading from 813 to 800 pounds. March closed down 10 pounds to 826 pounds in volume of 5,451 lots, having moved from 840 to 825 pounds.
Total volume was 12,475 lots.
"There has been some fund selling in London. London has been weighed by a weaker New York," one trader said, referring to a reversal of US futures into negative territory after a firm start following the Thanksgiving holiday. Traders referred to trade and industry support and mild hedging as well as steady spread activity.
They saw no market impact from the latest Ivorian bean arrivals figures, which showed a typical quantity for the peak stage of the October-March main crop. Cocoa arrivals at ports in Ivory Coast from October 1 to November 26 reached around 273,000 tonnes, compared with 353,905 in the same period last year, exporters said.
COFFEE HIGHER: London robusta coffee futures closed slightly higher on Monday, boosted by speculative buying as the market continued its modest rebound after recent steep losses, dealers said. Benchmark January ended $18 higher at $1,449 a tonne as the market edged away from the six-week low for the second month of $1,409 set early on Friday.
Total volume was 9,064 lots.