Traders look to balance accounts after slide

New York/London: Soft commodity markets consolidated largely higher on Friday as traders looked to balance accounts ahead of the three-day US holiday weekend, after most soft commodities slid last week on the European debt crisis.

US soft commodity markets are shut tomorrow for a Memorial Day. Trading resumes on Tuesday. London markets are open.

Sugar and cocoa futures crept above recent 21-month lows, and coffee was mixed as robusta beans retreated from an eight-and-a-half month top hit earlier in the session.

"Europe is keeping everyone on the sidelines," said Sterling Smith, vice-president of commodity research in Citibank's Institutional Client Group in Chicago. "You can see choppy two-sided trade."

ICE raw sugar futures failed to breach the psychologically important 20 cents (73 fils) a pound.

ICE July sugar futures added 0.04 cent to finish at 19.62 cents per pound, up from the 19.36 cents on Wednesday, the lowest level for raws since late August 2010.

Speculators trimmed their net short position in raw sugar futures and options in the week ending May 22, making it the smallest since January, US Commodity Futures Trading Commission (CFTC) data showed after the markets closed.

London August white sugar futures rose $1.20 to close at $557.70 per tonne.

Coffee

Coffee futures edged higher in seesaw dealings and light volume ahead of the US holiday weekend.

Robusta coffee futures were higher with July up $18 to end at $2,241 per tonne, having earlier touched $2,249, the highest for the second month since September 5, 2011.

Robusta coffee futures on Liffe remained firm having touched an eight-and-a-half-month high, continuing to outperform other commodities due to strong demand.

July arabica coffee rose 0.90 cent to end at $1.678 per lb. On Wednesday, the second month arabicas contract dropped to a 21-month low at $1.674.