London white sugar futures closed weaker on speculative profit-taking on Wednesday after strong buying earlier in the session lost momentum and the oil market reversed direction and moved lower, traders said.
Benchmark August settled down $6.80 or 1.4 percent to $474.00 per tonne, having moved from a 15-day high of $484.50 to $472.60.
October finished down $6.50 at $470.50.
Total volume was 5,523 lots.
Traders said strong buying early in the session fizzled out as fund buying across commodity markets ran out of steam and crude oil prices fell.
Analysts see a link between crude oil prices, which have hit record peaks this week, and demand for sugar because of heightened interest in cane-derived biofuel.
"Buying has dried up, and some people decided to take profits," one trader said.
Sugar has attracted heavy buying from speculators because of rising demand, low stocks and a strong appetite by investment funds seeking high returns from commodities, analysts said.
Traders said hedge selling was possible before Thursday's EU sugar export tender.
COFFEE HIGHER: Liffe robusta coffee futures closed firmer on Wednesday after touching new six-week highs on speculative and fund buying, dealers said.
Benchmark July robusta ended up $3 at $1,197 a tonne after hitting a peak of $1,216.
The May contract closed up $2 at $1,180 after a high of $1,199.
Total volume was 25,738 lots.
COCOA UP:
London cocoa futures closed slightly higher on Wednesday as scale-down buying by trade and industry countered speculative selling, dealers said.
Benchmark July closed up three pounds at 874 pounds a tonne, having moved from 875 to 866 pounds, while the May contract finished up five at 875. Total volume was 11,958 lots.
One trader also noted light origin hedging and switches.
"The weaker dollar is attracting some selling into London as well," he said.
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