London sugar rises

London white sugar futures tracked surging New York raw sugar to close up 3.5 percent on Thursday, just off a 4-1/2-month high on strong fund buying, traders said.
Liffe's most-active March contract settled up $10.9 at $320.7 per tonne after volume of 6,810 lots. It traded from $309.8 to $321.5 - the top price for a front-month contract since mid-July.
"It is heavy fund and speculator buying," one trader said, referring to the strong lift in London futures on the back of the New York market. Raw sugar on the New York Board of Trade surged to nine-year highs on robust fund buying.
Another trader said: "London is following New York. Funds are pushing up the market." British Sugar, a unit of Associated British Foods, hopes to sell sugar to Ireland and southern European countries that are expected to slash domestic output after EU reforms, an official said on Thursday.
COFFEE DOWN: London's robusta market slipped on Thursday on origin hedging and speculative selling, dealers said.
They also attributed weakness to New York's sharp drop on Wednesday. "New York has been a lead weight around London and yesterday's close did not bode well. People may be pre-empting New York coming down to test the 96 (cents) area," a dealer said.
Liffe's front-month January contract shed $9 to trade at $1,046 a tonne while March was $12 off at $1,060 by 1259 GMT. Both contracts moved over 1,100 lots and made up most of the 3,075 lot total turnover.
The New York Board of Trade's March arabica contract slid 2.95 cents to close at 97.00 cents a lb on Wednesday.
Robusta is up about 40 percent on the year as a smaller harvest in Vietnam reduces robusta supply, but arabica has lost eight percent.
Worries that drove arabica higher earlier in the year have eased on expectations supply will rise in the second quarter of 2006 when Brazil's harvest rebounds.
COFFEE HIGHER: London's robusta market rose on Thursday, recovering from earlier losses after a brief show of strength on the New York market inspired speculative buying, dealers said.
Liffe's front-month January contract rose $11 to close at $1,066 a tonne while March ended $13 higher at $1,085.
Total volume was 9,737 lots after 5,635 lots traded on January and 3,000 on March. Spreads and trade Against Actuals boosted turnover.
"London is desperate to go higher but it keeps being held back by New York," one dealer said. "It would be above $1,100 by now if New York had gone higher."
The New York Board of Trade's March arabica contract peaked at 97.70 cents a lb before trimming gains after London's close. Robusta is up about 40 percent on the year as a smaller harvest in Vietnam reduces robusta supply, but arabica has lost eight percent.