October white sugar at Liffe finished steady after volatile trading, standing at $519.50 per tonne on Wednesday, down 50 cents. The market is supported by expectations of strong Indian demand for sugar. December cocoa ended up 42 pounds at 1,927 pounds per tonne, having earlier touched a five-month high basis second month of 1,931 pounds, possibly buoyed by a report by independent analyst Hans Kilian which traders said cut Ghana's main crop output forecast.
November robusta coffee at Liffe settled little changed after a choppy session, at $1,495 per tonne, up $1. Cocoa futures rose, supported by fund and investor buying, while a soft dollar and steady oil prices helped to underpin the soft commodities spectrum, dealers said. Traders noted the sugar market had suffered a significant pullback after rising to a 28-1/2 year high for the front month of 24.85 cents on September 1 but had found support around 20.50 cents.
"This morning, the markets are mirroring yesterday's early action as October New York has traded an early low of 20.63 (cents a lb) only to retrace back over 21 (cents) to trade a current high of 21.18 (cents)," Sucden said in a daily report. Reports of renewed demand from top consumer India emerged after the drop in prices. India, the world's leading sugar consumer and number 2 producer, has swung from a net exporter to importer of the sweetener after a poor crop, and a weak monsoon signals disappointing output again next year.
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