London sugar down

London white sugar futures closed weaker on trade selling and structural activity on Tuesday as the trade digested a report from analyst F.O. Licht forecasting a lower stocks-to-use ratio in 2005/06.
Benchmark May settled down $7.20 or 1.60 percent at $442.80 per tonne in volume of 2,665 lots, after trading from $450.20 to $441.00. August finished down $6.20 or 1.39 percent at $440.7 per tonne in volume of 1,355 lots, having moved from $447.0 to $439.10. Total volume was 4,729 lots.
"The selling is mainly trade. The trade are on both sides of the market," one trader said. Another said: "There has been trade in May-August, and a little bit of arbitrage." A third trader said, "The May-August spread is coming off. The spread fell from $3.50 yesterday to $2.60 today. Traders have been selling the May and buying the August."
Traders said there was no immediate confirmation of Iraqi physical buying after news last week that Iraq was seeking to buy 500,000 tonnes of white sugar.
The global ratio of sugar stocks as a percentage of consumption is forecast to fall to 39.20 percent in 2005/06 from 40.96 percent in 2004/05, German analyst F.O. Licht said. Its previous estimate for the 2005/06 stocks-to-use ratio was 40.82 percent.
COCOA EASES: London cocoa futures closed slightly lower on Tuesday in balanced trade focused on the expiring March contract, dealers said.
Benchmark May closed down four pounds at 874 pounds in a volume of 21,204 lots, having moved from 883 to 870 pounds.
Front-month March also finished down four pounds at 855 pounds in a volume of 21,115 lots. Total volume was 46,984 lots.
"The market has been static all day," a trader said. "With the March expiry (on March 16) looming now, the concentration has been on the fixing of the March position."
COFFEE FIRMS: Liffe robusta coffee futures closed slightly firmer on Tuesday on lacklustre buying by trade and industry, dealers said.
Benchmark May robusta ended up $9 at $1,126 a tonne in a volume of 5,988 lots, having traded between $1,137 and $1,119. Spot March rose $7 to $1,107. Total volume was 9,637 lots. "It's been trade and industry scale-down buying limiting the downside and origin scale-up selling limiting the upside," a trader said.