London sugar futures ended firmer on Friday in brisk spread based trade and dealers said switch business was likely to remain the focus for now.
Front-month March closed $3.00 up at $188.80 a tonne, having moved between $184.40 and $190.00 on 2,667 lots from total turnover of 5,561 lots.
May gained $3.20 to end at $188.50 on 1,569 lots.
The March-May spread was quoted around flat to a 50 cent discount from a 40 cent discount to a 40 cent premium on Thursday.
"There has been further March-May activity in London and the trade is supporting it and there is not much fund selling around in New York," a trader said.
Dealers said physical interest was beginning to emerge which was helping to keep the whites market steady. "The whites market has improved against the raws market and there could be some off-take sought by Middle Eastern buyers," another said.
Traders said the front spread was expected to remain supported.
"The flat price is holding and the spreads have picked up ever since these new freight differential came out earlier this week. March-May volume has especially picked up," a third dealer said.
"There is Brazilian producer selling and trade buying and the front spread should be well supported at flat and at 50 cents to a $1.00 premium it will be sold."
Technical analysts said the overall tone was seen softer with scope light gains in the short-term.
Resistance on March was seen at $188.50 after breaching $187.50 earlier. Further resistance was seen at the $190.60 level. Support was pegged at $184.75 and $183.85.
Analysts saw pressure in coming months due to surplus global stocks.
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