London sugar lower

29 Jun, 2006

London white sugar futures closed weaker in switch-dominated trade ahead of expiry of the front-month August contract on July 14, traders said. August settled down $2.10 at $463.90 per tonne after trading in a range of $469.00 to $461.50.
Total volume was 8,488 lots. "Activity has been mainly switches," one trader said. Traders also referred to trade buying against producer selling. The European Union will open a series of new tenders in July to sell more than a million tonnes of intervention sugar into local markets and coincide with the start of a radical policy reform, officials said on Wednesday.
COCOA NEAR 12-WEEK HIGH: London cocoa futures finished just off their highest level since early April as funds bought when the market broke through a key price level, traders said.
Benchmark September rose by just under 1 percent to end at 933 pounds a tonne, up from its previous close of 924 pounds. September earlier touched a peak of 937 pounds, its strongest since April 4. A dip in prices the previous day attracted some tentative speculative buying, but that gathered pace throughout the day on Wednesday.
COFFEE SHARPLY UP: London robusta coffee futures closed sharply higher after touching a seven-week peak with the breach of a key resistance level helping to trigger buy-stops, dealers said.
The key September contract climbed as high as $1,222, its highest level since May 11, before running into profit-taking. It ended up $35 or 3 pct at $1,202 a tonne.
Dealers said an early advance in New York futures helped London breach a double top at $1,192 to $1,194 on September. Producer selling helped to stem the rise in New York but there was little sign of any origin selling in the robusta market.

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