US cocoa futures edged higher on Wednesday as a recoiling dollar and steady bean prices in London's cocoa market offered a modest reprieve from losses posted this week, industry sources said.
The New York Board of Trade's active December cocoa contract rose $5, or 0.4 percent, to settle at $1,388 a tonne, near the bottom of a trading range from $1,385 to $1,417. Stop-loss orders were elected when the contract broke above Tuesday's high of $1,405.
"The weak dollar was probably the factor," a trader said, pointing out the initial $30 rise at the start of trading spurred buy stops and speculative short covering.
Among other cocoa futures, March gained $6 to $1,424 a tonne, and back month contracts climbed $5 to $6.
Trading volume in cocoa futures reached an estimated 6,870 contracts, up from Tuesday's official tally at a low 4,236 contracts.
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