London sugar higher

London white sugar futures closed firmer on structural trade and speculative buying on Monday, and traders said the market might have to fall sharply to trigger significant physical business.
Benchmark August settled up $3.2 at $469.1 per tonne in volume of 3,564 lots after trading from $469.9 to $463.8.
October finished up $6.2 at $467.6 in volume of 2,414 lots, having moved from $467.6 to $462.
"There have been spread trades in August-October, but the more the market moves up, the less physical business we do," one trader said.
"We need to see a huge drop in the market to attract buying."
However, other traders noted that routine physical business was continuing.
Tunisia's state Office national du Commerce has bought 18,000 tonnes of white sugar at $495 per tonne cost and freight for August delivery, an official said on Monday.
COCOA HITS NEW 15-MONTH HIGH:
London cocoa futures hit a fresh 15-month high on new fund buying on Monday and the July-September premium widened to as much as 61 pounds, traders said.
The benchmark September contract settled up 13 pounds, or 1.4 percent, at 971 pounds a tonne after trading between 980 and 953 pounds. Total volume was 19,452 lots. "Funds are still active buyers...It appears to be new buying," a trader said.
Traders said funds were buying as they expected a rally that began last week to continue.
The second-month contract reached 1,010 pounds in March 2005. "There was some trade selling," the trader added. Spot July rose 28 pounds to settle at 1,028 pounds and its premium to September widened to as much as 62 pounds from 50 at the close of trade on Friday. The premium hit 56 pounds last month.
The traders said participants across the market, with the exception of funds, were buying July cocoa to cover short positions. Ivory Coast's mid-crop harvest is likely to exceed initial expectations of a big 350,000-tonne crop if steady arrivals at its two ports can be maintained in the first half of July, exporters said on Monday.
COFFEE HITS FIVE-MONTH HIGH:
London robusta coffee futures hit a five-month high on fund buying on Monday, before retreating slightly due to trade profit-taking, dealers said. The benchmark September contract settled up $30 pounds, or 2.4 percent, at $1,288 a tonne after trading between $1,296 and $1,268. Total volume was a healthy 23,822 lots.
Monday's peak was the highest level since the second-month contract touched $1,312 on February 3. "There was more fund buying...It's pretty much exclusively fresh buying by funds," a trader said.
Traders said the buying was part of a rally that began last week. The market hit a 4-1/2-month high on Friday. "Trade were profit-taking," the trader said, reporting origin selling from the Far East at the top of the day's range. Drier weather will allow normal harvesting to resume this week in Brazil and no severe cold is forecast during the first half of July, private forecaster Somar said on Monday.