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London white sugar futures closed slightly higher on Thursday after earlier rising to a fresh nine-year peak boosted by speculative buying and trade short-covering, dealers said.

March rose to a contract high of $353.00 a tonne, the highest level for the front month in more than nine years, and closed up $1.40 at $351.60.

Total volume was 3,465 lots. Dealers said some liquidation of positions might have been prompted by news that Liffe had raised margins on whites, effective from the close of business on Wednesday.

Producer selling of March, May and August was noted.

China will begin trading white sugar futures on January 6, the Zhengzhou Commodity Exchange said on Thursday.

COFFEE LOWER: London robusta coffee futures closed marginally lower on Thursday with speculative buying offset by light selling by Asian producers, dealers said. "We've had speculative buying and some origin selling, most likely Vietnam," one dealer said.

March closed down $3 at $1,185 a tonne. "Technically it still looks very good," one dealer said, adding the market was consolidating after its rapid advance earlier this month before possibly resuming its upward trend.

Total volume was a heavy 27,078 lots, boosted by active rolling forward of positions out of January into March.

COCOA MOVES UP: London cocoa futures ended higher on Thursday after earlier reaching a 16-week peak boosted by speculative buying and a lack of origin selling, traders said.

"There has been some spec type buying but I think it (the move up) is due more to a lack of origin selling," one trader said, noting that fund and option-related buying had contributed to the advance in prices.

Front-month March closed 16 pounds higher at 911 pounds after peaking in late trade at 912 pounds, its strongest level since early September.

Total volume was 14,099 lots with active spread trading in March/May, March/July and March/September noted.

Dealers said tensions in the Ivory Coast continued to be closely monitored.

Ivory Coast Prime Minister Charles Konan Banny named a cabinet on Wednesday that included rebel leaders from the war-divided country, triggering protests by youths supporting President Laurent Gbagbo.

Copyright Reuters, 2005


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