Cocoa and arabica coffee futures on ICE Futures US fell in early trade Tuesday as the dollar rebounded and attention turned to a rate decision expected by the US Federal Reserve Wednesday. July arabica contract was down 1.20 cents at $1.333 per lb at 9:19 am (1319 GMT), trading $1.3275 to $1.348. The rest down 1.25 to 1.55 cents.
Technical set-back after hitting minor resistance in July contract just above $1.36 Monday, traders said. Focus on expectation for US Federal Reserve to announce small interest rate cut Wednesday. Total futures volume on Monday at 15,161 lots, down from previous 19,466 lots, exchange data revealed. July cocoa contract was down $47 at $2,752 per tonne by 9:20 am, trading from $2,733 to $2,799. The rest shed $51 to $57.
Light volume allowing market to easily feel pressure, traders said. Ivory Coast cocoa arrivals around 1,088,000 tonnes from October 1 to April 27, up over 10 percent year on year. Mars' $23 billion agreed take-over of Wrigley set to reignite Cadbury Schweppes' effort to sweet talk Hershey into a merger, analysts said. Volume Monday at a light 6,596 lots, down from 7,817 lots the previous day, exchange data revealed.
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