NYBOT cocoa futures recovered from early losses to end slightly up on Tuesday, thanks to spread trading and short-covering from the previous session's losses, traders said.
Benchmark September cocoa settled at $1,577 a tonne, rising $3 on the day, after trading in a $1,530-$1,593 range.
December cocoa likewise rose $3 to $1,608 after trading from $1,568 to $1,620. Longer dated contracts finished up $3 to $4.
"Spread trading has been very active today. We are seeing a lot of long liquidation in the September contract ahead of the first notice day," one trader said. On Wednesday, the December contract replaces the September contract as the benchmark.
Traders said some funds covering their short positions helped stem losses in early trading.
Comments
Comments are closed.