London white sugar futures ended sharply higher on trade buying after a seesaw session on Tuesday, with attention focused on expiry of the NYBOT raw sugar futures front-month March contract, traders said.
Benchmark May settled up $15.10 or 3.46 percent at $451.10 per tonne in volume of 6,909 lots after trading from $453.50 to $426.00.
August concluded up $12.70 or 2.94 percent at $445.20 per tonne in volume of 3,005 lots, having moved from $446.40 to $421.50.
Traders said the late buying after a choppy session largely spent in negative territory came mainly from the trade. "Trade needs some cover and is trying to push New York higher," one trader said.
Earlier in the session, trade and speculator selling weighed on white sugar futures after raws futures on Monday tumbled from speculative liquidation, with operators looking towards expiry of the spot March contract on Tuesday.
The International Sugar Organisation (ISO) on Tuesday forecast a 2005/06 global sugar deficit of 2.2 million tonnes, up from its previous forecast in November of a 1.0 million tonne deficit.
COFFEE JUMPS:
Liffe robusta futures gained some two percent on Tuesday as the market finally punched through tough resistance, taking prices back up to the top of a three-week trading range.
Prices have been hemmed in a $1,243-1,169 band since early February and several traders said a close above $1,216 would open the way for benchmark May delivery to make a sustained move higher.
May robustas rose $23 to $1,228 a tonne, while spot March gained $20 to $1,208.
Robust turnover of 21,935 lots was boosted by pre-notice day business as speculators moved positions out of the front month before it enters its notice period on Wednesday ahead of delivery at end-March.
COCOA ENDS HIGHER:
London cocoa futures bounced off a 10-week low on Tuesday as funds and speculators reduced the pace of selling, while industry buying into the price dip was also supportive, traders said. Benchmark May earlier fell to its lowest since December 2005 at 862 pounds a tonne.
Turnover of 51,137 lots was boosted by a large March/July stock financing roll by banks, traders said.
"The market spent much of the day hovering around the lows and despite the industry buying, there is still bearish sentiment around," one dealer said.