New York cocoa ends 2003 on weak note, touches one-month low

CSCE cocoa futures ended lower on Wednesday, hitting their lowest price since November 26 in a surprisingly active year-end session as speculators and local traders operated from the short side after a brief bounce, brokers said.
"One dealer had about 140 lots to buy early and he bid the market up about $20, but then it ran out of buying and we fell hitting sell stops from $1,532 down to $1,515 on March," said one broker.
The active March cocoa contract finished down $22 at $1,515 a tonne, with a $1,500 to $1,557 trading range. The $1,500 low was the lowest price seen since November 26.
"Cocoa rallied early on spec buying and a lack of selling with London already closed. The market dropped away pretty quickly until the industry decided to do some buying," said another broker referring to the chocolate manufacturers.
May cocoa also closed down $22 at $1,519 a tonne and the back months settled $17 to $22 lower. On the political front in top producer Ivory Coast, warring factions said on Tuesday they were satisfied with progress made to withdraw heavy weapons from a central front line dividing the former French colony.
Rebels and government troops met in the eastern town of Daoukro to review the two-week-old operation, which is seen as a precursor to eventual disarmament and a key step towards ending civil war in the West African country.
A failed coup in September 2002 sparked civil war which killed thousands before a French-brokered cease-fire took effect earlier this year.
Estimated volume swelled to 8,312 lots Wednesday which included 1,000 Against Actuals (AAs) and about 1,980 switches, brokers said. On Tuesday only 2,394 lots changed hands.
In other news Brazil's 2003/04 (May-April) cocoa arrivals from Bahia and other states reached 2.81 million 60-kg bags by December 28, up 11.5 percent from a year ago, the Bahia Commercial Association said.
Brazil ranks as the world's fourth largest cocoa producer.
Technicians lowered support for March to $1,500 and then $1,471 a tonne with resistance at $1,537 a tonne and then $1,550 a tonne.
CSCE is a subsidiary of the New York Board of Trade.