London white sugar futures closed higher on Friday with renewed fund and speculative buying emerging after the market absorbed a bout of profit-taking, dealers said. Benchmark August settled up $1.10 at $473.50 per tonne, near the top of the day's range of $465.00 to $474.00.
October finished up $1.70 at $470.50 per tonne. Total volume was 6,355 lots. "The market retraced (downwards) but then speculators and funds came in to buy. This market is not going to fall too far while energy prices remain strong," one dealer said. Strong energy prices boost demand for cane-derived ethanol biofuel.
European farmers are set to increase grain and oilseed plantings and slash beet sugar sowings in response to price-cutting EU sugar regime reforms to be implemented this year, traders and analysts said on Friday.
COFFEE LOWER: London robusta coffee futures closed lower on Friday, weakened by profit-taking and origin selling after earlier rising to a six-week high.
July closed down $16 at $1,201 per tonne after earlier rising to a peak of $1,227, the highest level for the second position since March 6.
Dealers said the producer selling early Friday initially stalled this week's strong run-up while profit-taking emerged during afternoon trading.
"There is good producer selling above the market but there is no reason for prices to fall too far," one dealer said, noting speculators saw price dips as buying opportunities.
Total volume was 17,459 lots. Ivory Coast coffee bean exports totalled 35,071 tonnes from October 2005 to February 2006, down 16 percent from the same period last season, port data showed on Friday.
COCOA WEAKENS London cocoa futures closed weaker on Friday with fund selling prompting a test of support around a recent seven-week low where scale-down industry buying helped to limit the decline.
Benchmark July settled down 13 pounds at 868 pounds, just above the day's low of 866 pounds. The market had also dipped to 866 pounds on Wednesday, the lowest level for the second position since March 3.
Total volume was 6,494 lots. "It has been a gradual erosion rather than a sharp (downward) move. A decent US grind figure didn't seem to stem the fund selling," one dealer said.