London benchmark white sugar futures settled firmer on trade buying on Monday, but traders saw risks on the downside because of large harvests and a slack cash market. Benchmark October futures finished up $3.90 at the day's high of $439.90 per tonne while December finished $3.90 higher at $437.20.
Total volume was a light 2,906 lots.
"There has been some trade buying, and spreads, and premium activity (arbitrage)," one trader said.
Traders said the outlook for white sugar futures, which hit a 4-1/2-month low on a front-month continuation basis last Friday, remained bearish due to expectations of big crops in a number of countries.
Weak physical sugar demand also dragged on futures, with many cash buyers waiting on the sidelines hoping for further price falls.
The technical picture in futures had looked negative since a sharp reversal on July 6, traders added.
India will review its ban on sugar exports when the new sugarcane crushing season starts in October, Farm Minister Sharad Pawar said on Monday.
Sugar cane burning in Brazil's top cane producing state of Sao Paulo resumed on Saturday due to an improvement in air quality, the state's Environment Secretariat said on Monday.
COCOA DOWN:
London cocoa futures ended down on speculative selling in low volume trade on Monday as the market remained bound in a tight range, dealers said.
The September contract settled down 6 pounds, or 0.7 percent, at 850 pounds a tonne after trading between 860 and 846 pounds. Total volume was 15,848 lots, the majority of which was made up by spread trading, the dealers said.
"There was only a bit of outright trading...There was light spec selling," one dealer said. The market has been largely flat since July 20 and has ended close to 856 pounds in the previous three sessions.
Dealers say the market has been quiet after funds liquidated positions after the expiry of the July contract on July 14 and because the market is traditionally quiet in the summer period.
COFFEE RISES:
London robusta coffee futures closed slightly up on Monday, after retreating from a 6-1/2-year high touched during the session due to buying by funds anticipating supply shortages, dealers said.
The benchmark September contract for robusta, used in making instant coffee, jumped over 4 percent to touch $1,352 a tonne, before retreating to end up 1.6 percent at $1,317.
The bottom of the day's range was $1,296 and total volume was an average 21,067 lots by the end of the session.
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