London white sugar futures closed up on Monday with business dominated by rolling forward of positions out of October into December, dealers said. Front-month October futures ended $3 higher at $372 per tonne after trading from $376.20 to $368.50. December finished down $0.30 at $359.20.
Total volume was 4,306 lots. Dealers said October ended up on trade buying late in the session after trading down for much of the day. The forward months ended marginally down. "It looks like trade buying came into October before the end," one dealer said.
The dealers noted the prospect of a large global sugar surplus and the current slow pace of physical offtake could keep the market in the defensive.
Key support is seen around last week's seven-month low for the front month of $367.00 per tonne with a break below that level likely to spark further chart-based selling.
Dealers said if that support around that level holds the market could form a more bullish double-bottom chart formation. The days of windfall profits for investors in the booming US ethanol sector might be numbered because of the scores of ethanol plants coming on line or on the drawing board, analysts said last week.
COCOA FALLS: London cocoa futures ended down on trade and speculative selling on Monday on weak technical market signals after the market failed to fill a recent gap, dealers said.
The benchmark December contract settled down 8 pounds, or 0.9 percent, at 841 pounds a tonne, at the lower end of the day's range between 850 and 839 pounds. Total volumes were a moderate 5,962 lots. "The market didn't fill the upside gap...It failed to inspire," one dealer said. A gap below 852 pounds developed early last week. The market tested the gap but failed to rise over 851 pounds later in the week.
The dealer also said switch trading accounted for a significant portion of volumes in the market, which has largely traded in a narrow range since July 20.
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