London white sugar futures touched a fresh contract high of $270.5 on Monday, the highest for a front-month contract since July 2001, traders said.
March ended up $4 at $269.5 a tonne in volume of 6,233 lots after moving between $265.5 and $270.5. May concluded up $2.4 at $275.8 in volume of 2,127 lots, having traded between $273.1 and $276.3.
"We have seen good volumes of trade buying and against actuals," one trader said.
Another trader said a buy-stop was triggered at $268.0.
Traders said the recent rally by futures could deter physical buying and leave the market vulnerable to a fall.
Traders said Friday's US Commitments of Traders report was in line with expectations, and estimated funds' net speculator long position at around 110,000 lots.
According to the latest data issued by the Commodity Futures Trading Commission, the net speculative long position in NYBOT's raw sugar No 11 market rose to 45,332 lots at January 25, from 39,162 contracts as of January 18.
Non-reportable long positions went up to 34,730 in the January 18 report from 26,559 contracts at January 18.
In fundamental news, the Chicago Board of Trade intends to launch its corn-based ethanol futures in the second quarter of 2005, an exchange spokeswoman said on Monday.
Separately, Thai sugar premiums are expected to rise over the next few days, with exporters in no hurry to sell more forward contracts amid expectations the 2004/05 crop will be smaller than forecast, traders said on Monday.
COFFEE FIRM: Liffe coffee futures gained on Monday on interest from speculators and funds but ended off the day's high, traders said.
"A lot of specs and some funds are buying, and we have decent volume. On the sell side we see a bit of origin and speculative (selling)," a dealer said.
Liffe's benchmark March gained $11 to $767 a tonne after turning over 4,935 lots in a $773-762 band.
In touching $773 during morning trade the contract reached a new one-month high, the loftiest level since $785 on December 30. Total turn over was at 9,220 lots.
May ended $11 higher at $792 on 3,031 lots, while front-month January added $8 to close at $726 on turnover of 25 lots.
COCOA LOWER: Profit-taking after the previous week's rally left London cocoa futures two percent lower at Monday's close, according to dealers.
Liffe's benchmark March shed 19 pounds, or 2.2 percent, to close two pounds off the day's low at 834 pounds a tonne. It made a brief foray into positive territory in morning trade, peaking at 856.
"It's origin and profit-taking as well as some arbitrage selling into London," one dealer said. Industry buying was helping maintain support around 835, he added.
March futures attracted volume of 4,154 lots from an overall figure of 9,301.
May fell two percent to close at 847 pounds following an 845-866 price band on turnover of 1,707 lots.
Last week's rally faltered because industry had ample opportunity to buy when prices were hovering at a six-month low and did not need to follow the market higher, a second dealer said.
Liffe futures gained about five percent in the first four days of last week.
Players still expected the market to strengthen amid concerns about lower-than-expected output in West Africa for the 2004/05 season.