London cocoa futures ended mixed on Tuesday as the market consolidated following the previous day's sharp decline. Liffe's benchmark May settled two pounds up at 936 pounds a tonne after shifting 2,894 lots in a 932-946 range. Any fundamental concerns were outweighed by expectations of imminent hedging pressure from the West African mid-crop, which is now believed to be developing better than previously expected, according to traders.
Funds, however, remained the driving force behind prices and cocoa players were wary of renewed selling by funds. Liquidation by large speculators toppled both New York and London cocoa futures from recent highs with the market closing at least five percent down on Monday.
"It's a consolidation day, people are in two minds as to whether they're going to liquidate again or not," a trader said.
Overall volume in London was a moderate 5,890 lots.
July closed at 954 pounds after losing two pounds on turnover of 1,259 lots.
Armed ethnic groups in the west of Ivory Coast vowed on Tuesday to carry on fighting each other over land in a fertile region that grows a quarter of the country's cocoa beans and most of its robusta coffee.
Farmgate prices in Ivory Coast's cocoa regions were stable to higher from March 14 to 20, data from the BCC marketing body showed on Tuesday, supported by strong competition among buyers and shrinking bean supplies.
SUGAR ENDS FIRMER: London white sugar futures settled firmer on Tuesday, buoyed by talk of Chinese cash buying as futures prices seemed to have fallen to a level that entices physical demand from a number of origins, traders said.
May concluded up 20 cents at $257.70 a tonne in brisk volume of 3,495 lots, having traded between $258.40 and $256.00.
August ended up 50 cents at $256.00 in volume of 1,468 lots, after moving between $256.50 and $254.20.
Talk circulated in the international sugar market on Tuesday that China had bought a few cargoes, possibly around 100,000 tonnes of Latin American raws, but it was not immediately possible to confirm any deals.
Traders also referred to talk that Russians had bought around 100,000 tonnes of raws since late last week, and that Libyans had booked a couple of cargoes of white sugar, possibly Brazilian. There was no immediate confirmation.
"I guess the market has fallen to a level where buyers are happy," one analyst said.
Traders noted speculative and trade selling earlier in the session, but the market clawed back gains later in the day, underpinned by trade buying.
In fundamental news, recent rain and forecasts of more to come eased drought fears in various parts of Brazil's main centre-south sugar cane producing region, private forecasters Somar said on Monday.
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