London cocoa closed up on Thursday but off earlier highs after a weaker-than-expected performance in New York led some speculators to book profits. Volumes were mainly fixed on the March/May spread, traders said. Fund and speculative buying had lifted the London market from the outset on Thursday, but gains were pared before the market closed at the midpoint of the day's trading range.
Most-active Liffe May added 10 pounds to settle at 935 a tonne after moving 8,540 lots through a 945-925 range.
Spot March, which expires on Monday, settled 10 pounds stronger at 925 on 6,929 lots. It traded between 934 and 916 pounds. A total of 18,946 lots were traded.
"There's been some two-way speculative business going on within this 20 range, but I would say that a good chunk of the volume is on the March/May spread," a dealer said.
Traders said the differential between the two front months narrowed to between eight and 10 pounds, down from around 12 pounds heading into Wednesday's close.
"With open interest on March at around 18,500 lots, some people have a lot of work to do," said a trader.
SUGAR ENDS UP London white sugar futures settled a shade stronger on trade buying and seem underpinned by good prospects for Russian buying, traders said.
On Thursday, May settled up $1.20 at $261.40 in volume of 1,109 lots, having traded between $262.00 and $260.30.
Liffe August settled up 80 cents at $260.00 in volume of 329 lots after moving from $261.00 to $259.20.
"There is talk the Russians are testing the waters," one trader said. "Trade buying featured today in light volumes, against some speculator selling."
Traders said Russian buyers were poised to re-emerge in force as a big slice of the last beet sugar crop was believed to have been consumed already, and a chunk of stocks had been used up. There was no confirmation of any deals done.
European traders said funds might have gone short in white sugar futures and hold long positions in the NYBOT raws market of around 75,000 lots.