London white sugar futures closed down on Wednesday on fund selling against trade and speculative buying, traders said. Benchmark October settled down $8.80 at $450 per tonne in volume of 6,099 lots, after trading from $457.60 to $449.
December finished down $9.40 at $447 per tonne in volume of 566 lots, having moved from $452.20 to $445.90.
"There is fund selling. We see a good opportunity to buy," one trader said.
Another trader said fund selling increased later in the session due to weakness in New York.
Global physical sugar trade was subdued this week with Brazilian raw sugar offered at discounts and Russian buyers sidelined ahead of the new beet harvest, traders said on Wednesday.
Rising bio-fuels demand will probably drive up crop prices and is creating growth opportunities for food processing companies, Goldman Sachs said on Wednesday.
A European broker in a daily report expressed surprise at a lack of price reaction from the impact of Typhoon Bilis in southern China.
COFFEE SLIP:
London robusta futures slipped in switch-dominated trading on Wednesday as the market held in a range after a recent rally, dealers said. The benchmark September contract settled down $2, or 0.2 percent, at $1,232 after trading between $1,242 and $1,227. Total volume was 6,993 lots.
"The bulk of the volume is accounted for by spreads. Take those away and you have very little else," one dealer said.
The contract extended Tuesday's rally earlier in the session before falling away towards the close. It ended down 3.9 percent on Monday on speculative and fund selling.
"You would expect it (the market) to hold and consolidate after the trading we have seen in the last few days, and that's exactly what we are seeing," the dealer added.
The premium between the November and January contracts stood at $4. It was as high as $17 last week.
Brazil's coffee belt, that is in mid harvest, was expected to see a new round of rains in the first half of next week but no crop damaging frost, private forecaster Somar said on Wednesday.
COCOA RISES:
London cocoa futures settled up slightly on Wednesday after climbing over 3 percent on trade and industry buying earlier in the session, dealers said.
The benchmark September contract settled up 4 pounds, or 0.5 percent, at 868 pounds after trading between 892 and 861 pounds. Total volume was 17,095 lots.
"The buying we saw earlier is done. They aren't there any more," one dealer said.
Dealers earlier said the market had bounced up on trade and industry buying, attracted by levels considered cheap after fund selling over Monday and Tuesday pulled the market down by about 15 percent.
The selling, described at the time as "much overdue", was triggered by the expiry of the July contract on Friday.
Funds needing to cover short positions and low stock levels of tenderable cocoa in Liffe certified warehouses had combined to widen the premium between the July and September contracts to as much as 120 pounds. The dealers also said the market was being pushed up by news of political instability in Ivory Coast, the world's leading cocoa producer.
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