London sugar rises

London white sugar futures closed up on Thursday after fund buying in New York gave the market a lift before the close, dealers said.
Earlier in the day, traders reported producer sales against trade short covering, and hedge selling against an EU sugar export tender.
Front-month March settled up $1.6 at $334 per tonne in volume of 4,821 lots, after trading from $328.5 to $334.1.
"Some funds and locals have been buying in New York," a dealer said.
May ended up $2 at $344.40 per tonne in volume of 896 lots, having moved from $338.5 to $344.4.
"Some big trade houses were caught short and have been buying back positions, and there has been producer selling and hedge selling against today's EU tender," one trader said.
The EU sugar tender award exceeded market expectations.
The European Union sold 136,000 tonnes of white sugar at a maximum rebate of 37.36 euros per 100 kg at Thursday's tender, EU data showed.
Bids were submitted for 176,500 tonnes.
One trader said that out of the total of 136,000 tonnes, traders in Germany received 15,000 tonnes, in Denmark 32,000, in France 32,000, and in Britain 57,000.
Traders had forecast that the EU would grant export rebates for 70,000 to 75,000 tonnes of white sugar at the tender.
At the last tender on November 24, the EU sold 73,000 tonnes of white sugar at a maximum rebate of 39.374 euros per 100 kg.
Global sugar prices are likely to hit new multi-year highs in 2006 as more Brazilian cane is converted into biofuel, but risk a violent selloff if the market sees a glut, traders and analysts said on Thursday.
COCOA FLAT:
London cocoa futures closed flat on Thursday, bound to the previous day's range as currency and origin hedging pressure offset trade and speculative buying, dealers said.
Sterling's rise by more than half a percent against the dollar weakened cocoa futures early in the day before the currency steadied after the Bank of England kept interest rates unchanged.
Liffe's front-month December opened at a session low of 833 pounds a tonne but finished four pounds off at 838, four pounds below the day's high. Volume was 4,561 lots.
"It's another inside day. There's not enough momentum, it's another day of consolidation," a dealer said.
"There's still a positive picture for the market though," he added, pinning resistance targets at 894 and 902 on March.
March traded 4,914 lots and ended one pound lighter at 872 after an 864-875 range.
Overall volume was 10,950 lots but outright activity was thin, dealers said, reporting crosses and trade Against Actuals.
Ghana's total 2005/06 cocoa crop is unlikely to exceed 600,000 tonnes, short of the 650,000 forecast by state industry regulator Cocobod in September, private industry sources said.
COFFEE UNCHANGED:
London's robusta coffee concluded barely changed on Thursday as general buying interest met with origin selling, traders said.
Liffe's front-month January rose $5 to end at $1,070 a tonne while second-month March added $4 to $1,084. Both contracts finished near the top of a $21 session range. Overall volume of 11,845 was almost evenly split between the two amid active spread interest.