London sugar ends mixed

15 May, 2004

London sugar futures closed mixed on Friday on trade buying and modest fund selling with the market seen consolidating in a range on hopes of further off-take.
Front-month August-settled at $213.0, up $1.2, in volume of 1,616 lots, having moved in a range between $214 and $211.
October ended at $218.2, up $0.1, in volume of 72 lots. December settled at $222.0, down $0.5 in 14 lots.
"We have seen some trade buying and fund selling in light activity that picked up after the New York opening," one trader said.
Traders noted arbitrage between London August and New York July at a whites-over-raws premium of $72.
"I expect the market to stay range-bound and consolidate in the hope of more off-take," another trader said. "The funds are still long," he added.
Funds this week liquidated long positions after speculative buying on sentiment India, Russia and others would import large quantities.
Traders said a Tunisian purchase indicated that price-sensitive buyers were taking advantage of recent dips in the market.
Tunisian state-run Office du Commerce has bought two 14,000 tonnes cargoes of white sugar at $267 a tonne cost and freight, an official in Tunis said on Friday.

Read Comments