London white sugar futures closed slightly higher in London on Monday after short-covering supported the market, traders said. Front-month May closed at $334.0 per tonne, up $1.6 from Friday's close, after trading in a range of $331.5 to $334.4. Total volume across contracts was 3,058 lots, around half the 100-day moving average of 6,100.
Traders said the London market was supported by short-covering by speculators, but since many short positions have been covered recently, the potential for more rises was limited. Rain, hot weather and organisational problems are jeopardising Cuba's planned 1.6 million tonne sugar harvest, national and provincial reports indicated.
COCOA WEAKENS: London cocoa closed at Monday's lows as futures, having spent most of the day up, were forced lower by speculative selling in the last hour, dealers said.
Benchmark May lost 6 pounds or 0.6 percent to 964 pounds a tonne. Spot March dropped 5 pounds to 949. "It's been a bit of a mixed day," one trader said. May cocoa opened unchanged and had traded up to 979 a pound before drifting lower late in the day.
"There was a suggestion of some spec buying earlier," he said, adding that the CFTC's Commitment of Traders numbers, released on Friday, may have played a role in the morning's strength as well.
COFFEE EASES: London robusta coffee traded lower at close Monday on a combination of spread activity and light origin selling, dealers said. Benchmark May closed $11 or 0.7 percent lower to $1,558 a tonne, having traded down to $1,531 earlier in the session. Spot March also dropped $11 to $1,539. Volume was heavier than normal at 24,272 lots traded, with March and May trading around 10,000 lots each.
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