"Funds have been triggered back in on the back of trade buying," one trader said. Another trader said: "It's everyone buying - funds and trade."
A third trader said: "We are seeing arbitrage buying against New York at a May-May whites-over-raws premium of $62."
Tunisia's state-run Office du Commerce has bought 28,000 tonnes of white sugar at $312 per tonne cost and freight, an official said on Tuesday.
"We purchased one cargo of 28,000 tonnes of white sugar for June shipment," the official added.
One trader said the price suggested the origin was more likely Brazilian than EU.
Iraq's State Company for Foodstuff Trading (SCFT) has extended the deadline in its tender to buy around 25,000-50,000 tonnes of 45-ICUMSA white sugar to February 25 from February 21 previously.
COFFEE FINISHES DOWN: London's coffee futures settled down on Tuesday after bouncing off a two-week low that followed New York-driven speculative sales, traders said on Tuesday.
London's benchmark May shifted 8,644 lots and finished down $11 at $837 a tonne. The price ranged between $850 and $826 - the lowest since $825 on February 4.
"A few small sell-stops were triggered when New York slid...There was industry scale-down buying in London and origin has not followed it lower," one dealer said.
There was still no sign of the much-anticipated sell-off by large investment funds believed to hold a net long position of 27-30,000 lots in London. "Some will be sweating but they don't seem to have cracked yet," the first trader said.
Fund investment had driven New York's arabica prices to a five-year high and London robusta to a two-year peak recently.
COCOA FLAT: London cocoa futures ended flat on Tuesday after the opening of New York's cocoa market following a three-day weekend failed to provide impetus, traders said.
"There is no stimulation. People are either slightly bearish or bullish but no one is fully bearish or bullish," a trader said.
Liffe's most-active May shed three pounds to end at 866 pounds per tonne on volume of 2,462 lots. It traded between 863 and 876.
Front-month March fell three to settle at 853 in volume of 2,376 lots. It traded between 850 and 861.
Traders said structural trading bumped volume up to a total 6,871 lots.