London December white sugar futures closed up 30 cents at $236.8 after a choppy session featuring AAs and arbitrage, and traders said they believed funds had cut the size of their long positions. March ended up 70 cents at $247.0 in volume of 1,513 lots, after trading in a $249-245.4 range.
Traders noted AAs and arbitrage, buying of March New York against sales of December London, as well as March-March trades.
They said funds had cut back their long positions, which could prepare the way for a burst of buying next week.
Broker Societe J Kingsman said on Friday it had reduced its forecast for the 2004/05 (April-March) global sugar deficit to 4.03 million tonnes, partly because of higher than previously expected Brazilian and European output.
Export availability of EU-origin white sugar has risen, as growing and harvesting conditions in September and October were good, merchant ED&F Man said on Friday.