London sugar weakens

London benchmark white sugar futures settled weaker on producer selling on Thursday after a few sessions characterised by trade buying of the front month dominated by one merchant, dealers said. Front-month May finished down $2.00 to $344.80 per tonne after moving from $347.90 to $343.90.
Total volume was a light 6,040 lots. Dealers talked of producer selling with an eye on the expiry of the May contract on April 13. The white sugar futures market has been marked in recent days by aggressive buying of May futures by one trade house, possibly against physical business done in the Mediterranean region, dealers said.
Shipping brokers referred to recent quotes by the merchant apparently intended to move white sugar from Asian origins to Umm Qasr port in Iraq, but it was unclear whether business with Iraq was linked to the latest merchant buying of May futures.
Traders said May appeared to be caught in a $340-350 range, possibly largely due to pressure from the merchant. Euronext.liffe May raw sugar futures closed down 0.15 cents at 10.23 cents a lb. Total volume on London raws was 25 lots.
COCOA FIRMER: London cocoa futures closed higher on speculative buying against trade selling on Thursday and underlying fundamentals remained bullish due to expectations of tight supplies, dealers said.
May finished up nine pounds at 994 pounds per tonne, near the top of the day's range of 995 to 980 pounds. Total volume was a very light 6,371 lots. Traders talked of speculative buying against trade profit-taking, as well as light spread activity before the March expiry on Thursday. The delivery tonnage against the expiry was expected to be small. The second month hit 1,032 pounds in November 2004.
COFFEE HIGHER: London robusta coffee futures closed firmer and near the day's highs on Thursday, boosted mainly by speculative buying, dealers said. Benchmark May finished $25 higher at $1,508 a tonne, near the top of the day's range of $1,510 to $1,483. Total volume was a light 7,631 lots. Dealers said the rise in New York arabica futures back above the key 110.00 cent level, basis May, had helped to prompt speculative buying in London. Light origin selling helped to limit gains.