London sugar firmer

London sugar futures ended firmer on Tuesday buoyed by gains in New York, dealers said.
They added that the move up was a technical bounce after the recent weaker tone on the New York raws market.
Front-month March closed $2.30 up at $187.30 a tonne, having moved between $189.20 and $185.50 on 2,942 lots from total turnover of 7,414 lots. May gained $2.00 to $192.00 on 2,959 lots.
The March-May spread was quoted around a $4.00 to $5.00 discount, from a $5.00 discount on Monday.
Dealers said activity would remain focused on the front spread in the run-up to the March expiry on February 13.
"The New York market had got overdone and there has been a large speculative short position built up of late. What we have seen is a bit of a rebound in both markets today," an analyst said.
"There has been some fund buying and trade buying underneath the market today. There is a sense that the New York market will go lower and a lot of talk about physicals being dumped against the market."
Traders and analysts said the March delivery was likely to be low key with a lack of interest from potential deliverers and receivers.
"London should stay choppy until after the March expiry and we are looking at a small delivery comprising Brazilian cargoes," another trader said.
Technical analysts said prices were seen staying steady with support on March seen at $182.40. Resistance was pegged at $188.00.
Analysts saw pressure in the coming months due to surplus global stocks and a lack of strong demand.