London white sugar futures closed higher amid trade buying and arbitrage against the New York market, but remained below the resistance level of around $256, dealers said.
Front-month October settled up $3 at $255 a tonne in volume of 2,236 lots, having moved between $251.4 and $255.3.
December finished up $3 at $257 in volume of 195 lots.
Traders said activity centred on trade buying, mainly of the front month, and referred to arbitrage in the October-October whites-over-raws premium of around $71.5.
Concern over dry weather in India, the world's biggest sugar consumer which is believed to be short of sugar after a poor crop, continues to underpin the market, one trader said.
Technical analysts said October Liffe sugar futures could have scope for a drive toward the $260.5 January 2003 peak.
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