London sugar moves up

London sugar futures ended up two percent on trade and speculative buying on Thursday as the market appeared to turn the corner after a spate of selling since late last month. Traders said an EU tender award was below expectations.
Most-active March settled up $5.80 at $287.00 per tonne in heavy volume of 6,810 lots, having moved from $287.00 to $279.40.
December settled up $6.70 or 2.47 percent at $277.90 per tonne in volume of 2,269 lots after trading from $277.90 to $271.20.
"The market was overdone on the downside," one trader said. "As it pushed down, producers weren't willing to sell. For the moment, it looks like the worst is over."
White sugar futures had been on the retreat since an order last month by the World Trade Organisation (WTO) that gave the EU less time than expected to place surplus sugar on the world market.
Traders also referred to spread activity ahead of the expiry of the December contract on November 15.
An EU sugar export tender award was slightly below market expectations.
The European Union sold 73,500 tonnes of white sugar at a maximum rebate of 41.36 euros per 100 kg at Thursday's tender, EU data showed. The data said bids for 187,750 tonnes were submitted.
The European Union had been expected to grant export rebates for 80,000 to 150,000 tonnes of white sugar at the tender.
COCOA ENDS UP: London cocoa futures ended up for the third successive session on Thursday, dragged up by increased activity in New York as a weakening dollar kick-started speculative buying, traders said.
Liffe's front-month December contract rose 0.37 percent to end at 809 pounds per tonne after trading between 801 and 813 and moving 9,451 lots. Total volume was 16,929.
"Impetus is on the buy side, supported by the weaker dollar in New York," a market source said.
Traders also said farmers were waiting in the hope prices would rise before putting their beans on the market.
"The market is taking into consideration that 800 pounds is very cheap and we may see a slowdown in origin selling if the market stays stuck at these levels," one trader said.
COFFEE EXTENDS 2-MONTH HIGH: London robusta coffee futures closed above their earlier two-month peak on Thursday on speculative and fund buying, traders said.
Liffe's most-active January closed up $14 at $1,057 a tonne after trading in a $1,032-1,060 range. Total volume was 9,776 lots.
"There is some speculative and fund buying today as well as some origin selling. We also have some speculators who sold into the two-month high," said a trader.
US forecaster Meteorlogix predicted on Thursday scattered showers in Brazil during the next three days, with most activity in Minas Gerais. In Mexico, coffee exports leaped 31.88 percent in October vs. the year-ago period to 130,601 60-kg sacks, the agriculture ministry said on Thursday.