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London sugar futures closed higher on Tuesday after a dull session in light follow-through buying after a trade-led push upwards began on Monday.
Front month August closed up $3.5 at $219.7 a tonne in very low volume of 1,269 lots, having moved in a range between $220.0 and $216.9.
Second most-active October settled at $223.2, up $2.8, in volume of 270 lots, having moved in a range between $223.2 and $220.0.
"Activity is very quiet today. A big merchant tried to push the market higher yesterday, but there is not a strong follow-through today," one trader said.
Another said: "The funds are reluctant to push the market higher as they are already long and they fear the market could turn back downwards."
One trader said London whites were buoyed late in the session on the back of trade, fund and speculator buying in New York.
Traders said that in the short term the huge Central/South Brazilian harvest continued to weigh on the market.
In fundamentals, farmers in Romania and Bulgaria, the next two states due to become EU members, would see a gradual phase-in of the bloc's agriculture subsidies from 2007, a draft European Commission document showed on Tuesday.

Copyright Reuters, 2004

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