London sugar futures fell on Thursday on trade and fund selling and possibly on hedge selling against an EU sugar export tender. Benchmark August futures settled down $3.50 at $443.50 per tonne after earlier dipping to $435.90, the lowest level for the front month since March 9.
Total volume was 10,762 lots. "There was a huge drop in New York, and London is following. Trade and specs are selling," one trader said. Losses were trimmed in late trading as crude oil prices rebounded from an earlier setback.
Traders said the latest sell-off in futures could trigger another round of physical sugar enquiries from buyers whose stocks have wound down. Traders said the tonnage awarded in an EU sugar export tender was below expectations.
COCOA HIGHER: London cocoa futures ended up on Thursday but off a five-week high triggered by system-based funds covering short positions, dealers said.
The benchmark July contract rose 5 pounds to settle at 851 a tonne, far off a five-week high of 900 pounds hit early in the session. The day's low was 844 pounds and total volume stood at 25,320 lots. "Everyone was selling after the spike ... There was some origin selling and some from trade," one dealer said.
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