London sugar futures closed mixed on Tuesday after a session marked by trade and speculative buying against speculative selling, and dealers noted firm demand for high-quality refined sugar. May settled up $2.10 to $347.90 per tonne in moderate volume of 3,996 lots, having moved from $350.10 to $344.0.
August finished down 60 cents to $329.50. Traders noted firm trade buying pressure in the front month against speculative selling pressure. "Quality sugar is in demand," one trader said, anticipating upward price pressure in the coming days.
Traders said rises in raw sugar futures had outpaced white sugar futures, narrowing the whites-over-raws premium to around $115.50 between the London and New York May contracts, from $117 on Monday.
COCOA CLOSES BELOW 8-MONTH HIGH: London benchmark cocoa futures closed below fresh eight-month peaks on Tuesday as funds continued a buying spree and profit-taking limited gains, dealers said.
Benchmark May closed at 1,006 pounds a tonne, down one pound. The contract rose to a peak of 1,010 pounds in early trade, the highest for the second month since July 17, 2006. "We saw fund buying at the beginning of the session, and we saw fund selling from mid-morning," a trader said.
Dealers said the market's run-up, which has seen prices for the second month climb more than 20 percent since late November, was driven by concerns about crop prospects in West Africa and bullish technicals.
COFFEE EASIER: London robusta coffee futures closed easier on Tuesday, with speculators on both sides of the market, dealers said. Benchmark May closed $19 down at $1,506 per tonne after trading in a range from $1,540 to $1,505. Total volume was a modest 9,321 lots.
Dealers noted no price impact from a forecast from the International Coffee Organisation (ICO) that 2007/08 world coffee production was expected to total around 112 million 60-kg bags, down from 122 million in 2006/7.
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