London sugar futures closed higher on Thursday as speculators bought back futures after an EU 2005/06 production quota cut came in slightly below market expectations. The market was also buoyed by high energy prices and a Pakistani tender result, traders said.
Benchmark December settled up $7.40 or 2.6 percent at $290.90 per tonne in volume of 4,060 lots after trading from $291.40 to $282.50.
March concluded up $5.0 or 1.74 percent at $292.0 per tonne in volume of 1,170 lots after trading from $292.0 to $288.0.
"It's a bounce because Pakistan bought sugar, and the EU quota cut was a bit less than expected," one trader said.
State-run Trading Corporation of Pakistan (TCP) said on Thursday it had purchased 25,000 tonnes of white sugar at $332 a tonne C&F Karachi.
COFFEE RECOVERS:
London robusta futures rebounded on Thursday amid concern a new storm could cause heavy rains in New Orleans and disrupt the US coffee industry just as it tries to assess damage from Hurricane Katrina, dealers said.
Liffe's benchmark November ended $25 or 2.9 percent higher at $882 a tonne after trading 10,360 lots in an $868-890 price bracket. Total volume was 18,314.
COCOA FIRMS:
London's cocoa market firmed on Thursday and made a slight recovery from an earlier one-month low thanks to currency support, dealers said.
Liffe's front-month December contract ended 4 pounds higher at 793 pounds a tonne after touching a new contract low of 785 - the weakest price for a front-month position since August 18.
December made a session high of 796 and moved 3,936 lots out of a total of 7,274.
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