London sugar higher

London white sugar futures closed higher on trade and speculative buying on Wednesday on a stronger New York raws market, traders said. Front-month December settled up $4.40 or 1.6 percent at $283.40 per tonne in hefty volume of 3,345 lots, having moved from $278.00 to $283.50.
March concluded up $5.50 or 1.9 percent at $293.00. Total volume was 8,594 lots.
Traders were divided over whether the buying, which followed a sustained sell-off since last Friday's WTO order to the EU to limit sugar exports by May 22, suggested the market had reversed course or was merely pausing before falling further.
"It is a consolidation around these levels. I think the market will head down further," said one trader.
Another said: "Trade have been buying, and some of the specs have been buying back positions. We may have turned a corner."
The whites market fell five percent after the WTO on Friday gave the EU less time than expected to place surplus supply on the world market, and traders said white sugar futures could shed a further $10-15 per tonne.
Analysts estimated the EU may have to sell up to seven million tonnes of refined sugar by May 22 - earlier than anticipated - and said the bloc would likely award substantial tonnages in export licences at its forthcoming tenders.
A WTO arbitration panel was asked by major sugar exporters Australia, Brazil and Thailand to decide when the EU would have to implement the WTO's original ruling, issued in 2004. The EU later lost an appeal against that decision, and must now bring its sugar policy into line - or risk trade sanctions.
COFFEE RISES: London robusta coffee rose almost 2.4 percent on Wednesday, supported by industry buying, traders and analysts said.
Producer selling was expected to remain light this week due to holidays in Asia and the end of the Islamic fasting month of Ramadan.
Liffe's second-month January shifted 4,149 lots and finished $22 higher at $942 a tonne. It moved in a $920-954 range.
The spot November position traded 461 lots and ended $23 higher at $928. Overall volume was 6,180 lots.
"The market went slightly higher as expected and there was good support at around $920. The industry buyers are coming back and they are talking it a bit higher," an analyst said.
COCOA LOWER: London cocoa futures ended slightly lower with the prospect of a large harvest in West Africa keeping the market on the defensive but little origin activity evident on Wednesday, dealers said.
"It was a slow, sideways day. There was not a lot of origin selling around," one dealer said, noting a holiday in the Ivory Coast earlier in the week may have helped reduce producer sales.
Liffe's most-active December closed five pounds lower at 814 pounds a tonne, near the middle of the day's very tight range of 811 to 818 pounds. "It was really a day off," one dealer commented.
Support was anticipated for the December contract around 807, with initial resistance put at 825. December traded 3,016 lots out of a total volume of just 4,992 lots.