London white sugar futures closed near a fresh eight-year high, boosted by trade short covering with funds on both sides of the market, traders said.
March closed up 3.2 percent or $10.30 at $329.50, just below its earlier peak of $330.50, the highest for the first position in more than eight years.
Traders put next key resistance in March at $331.00.
May settled up 2.7 percent or $8.90 at $337.50 per tonne. Total volume was 5,155 lots.
"It's been mainly trade buying, with funds cancelling each other out - funds on the buy side and the sell side," one trader said.
Traders said a US import quota increase was less than expected and could precede a further US quota rise.
Responding to tightening supplies of sugar, the US Agriculture Department said on Friday it increased the import quota for the sweetener by 450,000 short tons, raw value, for this marketing year.
COFFEE LOWER:
London robusta coffee futures closed slightly lower on Monday, weakened by late speculative selling, traders said.
"We lost a little ground on some speculative long liquidation at the death but it (the market) generally held up quite well," one trader said.
The market had opened lower following a weak finish in New York on Friday but gradually edged higher and had established modest gains by early afternoon.
January closed down $5 at $1,052 a tonne after rising to a peak of $1,063 during the afternoon.
Total volume was 5,600 lots.
News that Vietnam was set for a large crop in 2006/07 had little impact on prices.
"I think that is highly possible (a large Vietnam crop in 2006/07) but it is not a market factor. People are focusing on the near term," one trader said.
Vietnam is set for a big harvest in the crop year to September 2007, although heavy rains have arrived too late to halt a decline in ouutput in 2005/06.
COCOA DOWN:
London cocoa futures closed lower on hedge selling on Monday, and traders said the market could be pausing before moving higher again.
Front-month December settled down 26 pounds at 835 pounds a tonne while March lost 26 pounds to end at 864 pounds. Total volume was 8,788 lots.
"We've seen a little bit of hedge selling, and funds are not so active," one trader said.
"The market ran out of steam on the upside (last week), and could be pausing for breath before another move higher."
The market was supported last week by concerns that the 2005/06 Ivorian main crop might be smaller than initially expected.
"Reduced expectations over the Ivorian crop have been factored into the market," another trader said.
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