LONDON, July 26: Fund buying helped push London white sugar futures to new contract highs on Tuesday as dealers banked on a strong New York open to keep the market firm. Spot October sugar was $4 firmer at $293.00 a ton after moving 1,596 lots. It peaked at $293.40, a new contract high, up from the $289.80 intra-day low. I think we’ve seen the funds buying into London again, though maybe a mixture of some trade and speculative interest too, one dealer said, adding that producer hedging ensured the gains were moderate.
US raw sugar prices uncorked a sizzling rally to end Monday at its highest level in nearly 4-1/2 years, powered mainly by buying from jittery importers who fear the sweetener may soon race past the 10 cents mark. NYBOT October closed Monday more than two per cent higher at 9.90 cents a lb. Technicians saw next resistance for LIFFE October whites at $293.60, ahead of $294.70 and $297.30, while nearby support is seen around $288.00 and $285.00.—Reuters
