London sugar futures closed slightly lower on Tuesday, pressured by selling across commodities on worries over rising inflation and interest rates, and traders said cash buyers were cautious. Benchmark August settled down $2.40 at $443.40 per tonne after trading from $445.50 to $439.00.
Total volume was 7,380 lots. "We are trailing everything else," said one trader, noting that sugar appeared less hard hit than metals and oil. Traders said the slippage in futures had led to increased physical business, but buyers remained cautious, unsure whether prices would fall further.
Traders referred to enquiries by Egyptian physical buyers for some 20,000-40,000 tonnes of raw sugar in recent days, but there was no official confirmation. Cuba is looking to book the purchase of four cargoes of white sugar, a trade source said.
COCOA MARGINALLY UP: London cocoa futures ended marginally higher on Tuesday as trade buying countered fund selling, dealers said. The benchmark July contract settled up 3 pounds, or 0.34 percent, at 884 pounds a tonne after trading between 890 and 869 pounds. Total volume was 13,422 lots.
COFFEE DIPS: London robusta coffee futures ended down on speculative and origin selling on Tuesday, with switch trading accounting for much of the session's volume, dealers said.
The benchmark July contract settled down $10, or 0.88 percent, at $1,123 a tonne, the bottom of the day's range between $1,133 and $1,123. Total volume was 11,582 lots. "There is trade on the buy side and some spec and origin selling," said one dealer, adding that switch trading on the July and September contracts dominated volumes.
Coffee traders in Brazil were hurrying to conclude business before markets close early ahead of the country's first World Cup soccer match.
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