London sugar futures closed sharply up and near a 2-1/2 week high on Monday, boosted by trade buying as the market showed signs of a recovery from a downturn that began in early July, traders said.
December settled up $13.00 at $395.00 per tonne after reaching a peak of $400.00, the highest level for the front month since September 21.
Total volume was 7,903 lots.
"The (December-March) spread has tightened. The London market has been erratic, with trade buying," one trader said.
Traders said the market appeared to be correcting upwards from a downswing that began in early July.
Traders were watching closely for signs of weekend physical offtake, but there were no immediate confirmed reports of business.
COCOA LOWER:
London cocoa futures closed weaker on light origin hedge selling in a quiet session on Monday that ignored a toxic waste protest near Ivory Coast's main port of Abidjan, traders said.
December settled down 8 pounds at 823 pounds a tonne, near the bottom of the day's 833 to 822 pound range.
Total volume was a light 4,104 lots. "Volume is lousy. The market is weaker. Nobody is interested in the protest in Abidjan," one trader said.
Traders said the protest was viewed by the market as a temporary problem that was unlikely to have any long-term impact on cocoa deliveries to the port.
World cocoa grindings should outstrip production in 2006/07 (October/September) with a deficit of 21,000 tonnes seen versus a surplus of 20,000 tonnes in 2005/06, investment bank Fortis said in a monthly report.
COFFEE LOWER: London robusta coffee closed sharply lower on Monday, weakened by trade and speculative selling with the decline initially triggered by a drop in New York's arabica market, dealers said. The November contract ended down $38 or $1,430 with the front month weakening sharply after trading as high as $1,554 a tonne on October 4.
Total volume was 11,771 lots.
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