London white sugar futures closed higher on Wednesday, boosted by a late advance in New York raws, dealers said. December settled up $7.50 at $375.00 a tonne, near the top of the day's range of $377.80 to $363.00. Total volume was a light 5,209 lots.
"We followed New York where there was fund and local shortcovering," one London dealer said. Traders said the market adjusted to publication by Liffe of freight differentials, and the December-March spread had widened. Sugar delivered against the December contract to non-European ports will have higher discounts with Recife in Brazil, for example, rising to $26 from $20 for the October contract. They also noted possible arbitrage with a whites-over-raws premium between the London March and New York March contracts at around $90-91 per tonne.
COCOA ENDS LITTLE CHANGED: London cocoa futures closed little changed on Wednesday with light industry buying largely offset by origin selling, dealers said. December settled up 1 pound at 825 pounds, towards the bottom of the day's range of 845 to 821 pounds while March finished unchanged at 841 pounds.
Total volume was 8,749 lots.
COFFEE ENDS HIGHER: London robusta coffee futures closed higher on Wednesday, boosted by trade and industry buying triggered by gains in New York's arabica market, dealers said.
"The New York buying prompted a bit of (buying) interest in London. I think there was some trade and industry buying (in London)," one dealer said. The benchmark November contract ended $14 higher at $1,525 a tonne after trading in a range of $1,535 to $1,504. Total volume was 7,703 lots.