London sugar futures closed weaker on speculative selling in light volumes on Wednesday, and traders said they expected a big award at Thursday's EU export tender.
Front-month December closed down $5.10 at $303.5 per tonne in thin turnover of 2,252 lots, after moving from $303.5 to $309.
March settled down $4.20 at $310.7 in volume of 928 lots, after trading from $310.70 to $314.2.
"Today has been very quiet, and marked by speculative selling," one trader said. Traders and analysts said speculators were now the main driving force in the London futures market, divorcing price levels from physical business, resulting in futures prices that seem overbought.
COFFEE RISES The London coffee market closed higher on Wednesday but failed to repeat the strong gains made earlier in the week as coffee players waited to see if the New York market was set for a sustained rally, dealers said. Arabica and robusta leapt higher on Monday and Tuesday after breaking out of a recent trading range and reversing a short selling campaign by funds following technical signals.
Liffe's November robusta contract finished $14 or 1.5 percent up at $963 a tonne after trading 5,220 lots between $930 and $965. The contract is now up almost 11 percent so far this week. Overall turnover in London was 11,145 lots.
COCOA SLIPS London cocoa slipped to a two-week low on Wednesday as speculators sold against a background of ample supply prospects from West Africa at the start of the 2005/06 season, dealers said.
Liffe's most-active December contract concluded eight pounds lighter at 810 pounds a tonne. It moved 3,632 lots in an 807-816 price band.
Total volume was 8,314 lots. March finished at 830 pounds, down seven pounds after volume of 2,106 lots. July moved 1,702 lots thanks to active switch activity before concluding at 858 pounds, also seven pounds easier.
Comments
Comments are closed.