London sugar down

23 Jun, 2006

London white sugar futures closed slightly down, and off one-month highs, on Thursday on trade selling after spending most of the session in positive territory, traders said.
Benchmark August settled down $0.40 or 0.09 percent at $470 per tonne in volume of 3,599 lots, having moved from $475.40 to $468.50.
October ended down $1.10 at $464.90 per tonne in volume of 2,910 lots, after trading from $471.30 to $463.90.
One trader said the selling in London was in response to selling on the New York market.
"A trade house sold in New York and there was little buying to absorb it Locals and day traders in London were expecting fund buying before the close They were caught wrong footed and liquidated their long positions, the trader said.
The top of the August contract's range was the highest level since May 24.
There was trade buying and some origin selling earlier in the session.
Traders digested news that the European Union sold 29,350 tonnes of white sugar at a maximum rebate of 29.359 euros per 100 kg at Thursday's tender.
COCOA ENDS UP:
London cocoa futures ended up on an eight-week high on speculative and arbitrage buying on Thursday while the July/September premium rebounded to the top of a recent range, dealers said.
The benchmark September contract settled up 7 pounds, or 0.8 percent, at 914 pounds, after trading between 915 and 907 pounds. Total volume was 11,849 lots.
The settlement was the September contract's highest level since April 27, when it touched 917 pounds.
Spot July settled up 9 pounds, or 0.9 percent, at 969 pounds. Open interest was still a hefty 55,667 lots.
"There is some light arbitrage and light spec buying," one dealer said.
The July/September premium rebounded to 55 pounds, the same level as Wednesday's high, after receding to about 42 pounds earlier in the session. The spread was at a more habitual $10 discount at the start of the month.
Dealers say the premium, which ballooned on short covering by funds, has become more volatile as speculators take advantage of the position ahead of the contract's expiry on July 14.
Exports of semi-finished cocoa products from Ivory Coast totalled 165,652 tonnes from October to April 2006, up about 10 percent from the previous year, provisional port data showed on Thursday.
COFFEE HIGHER:
London robusta coffee futures settled up on speculative buying during Thursday's switch-dominated trade, dealers said.
The benchmark September contract ended up $8, or 0.7 percent, at $1,150 after trading between $1,155 and $1,142. Total volume was fairly thin at 7,097 lots.
"There is some spec buying ... In the end it was all about switches, one dealer said. "Funds were rolling forward ... The majority of the switches were out of July and into September," the dealer added.

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