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London sugar futures closed higher at the top end of its recent range on trade and speculative buying against producer and trade selling in moderate volumes on Thursday, dealers said.
Benchmark May settled up $11.50 or 3.5 percent at $344.40 per tonne, near the top of the day's range of $345.00 to $332.60. Total volume was an above average 8,460 lots.
"We're getting to the top end of the range. Thais are selling the May (whites-over-raws) premium," one trader said, adding that the May-May premium stood at around $99 and noting trade buying.
Firmer oil prices also gave support to sugar futures, traders said, in a reference to the link between sugar and energy. Sugarcane is a feedstock for biofuel ethanol.
No EU sugar export tender took place on Thursday.
Raw sugar futures volume on Thursday was 100 lots with May rising 0.35 cents to 10.94 cents a lb.
COFFEE LOWER:
London robusta coffee futures closed easier on Thursday, weakened by fund and speculative selling although prices finished well above the day's lows, dealers said.
Benchmark May ended down $22 at $1,528 a tonne after trading in a range of $1,571 to $1,505. Volume was a heavy 25,521 lots.
Dealers noted that prices had been higher during morning trading but suddenly reversed direction in early afternoon business, dipping more than $60 in a few minutes.
COCOA JUMPS:
London cocoa futures closed at a seven-month high on speculative buying on Thursday in sympathy with New York, after reversing direction from a morning spent in negative territory due to profit taking, dealers said.
May settled up 25 pounds or 2.60 percent at 986 pounds in volume of 9,362 lots, after trading from 986 pounds to 955 pounds. March finished up 24 pounds to 970 pounds in volume of 3,488 lots, having moved from 970 to 939 pounds. Total volume was a brisk 17,221 lots.

Copyright Reuters, 2007

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