Liffe sugar futures closed up in light trade with many players absent in the runup to a sugar trade dinner, and traders said price prospects remain bullish, underpinned by a expectations of a supply deficit in 2004/05.
December settled up $0.6 at $240.9 in slim volume of 1,478 lots, having moved in a $240.9-238.9 range.
March ended up $1.5 at $256.4 in volume of 886 lots.
"Today has seen a few spread trades - 250 lots of December-March, as well as some March-May and May-August. Activity is quiet this week ahead of the sugar dinner," one trader said during the afternoon session.
Several hundred sugar industry participants from around the world are expected to attend the London trade's premier dinner at the prestigious Guildhall on Friday.
In fundamentals, India, the world's biggest sugar consumer, is expected to raise sugar imports later this year and in 2005.
Kaison Chang, senior sugar specialist of the UN Food and Agriculture Organisation (FAO), said he expected physical raw sugar prices to remain firm into 2005, amid increased demand by India, China and other Asian countries, as well as an expected global downturn in output and falling sugar stocks.
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