London cocoa futures settled about 2.6 percent lower on Thursday as expectations of new liquidation by funds deterred industry and speculator buyers, dealers said.
A stronger pound also took its toll on the market, which closed higher the previous two sessions in what was seen as a technical rebound following a slide in prices since the end of August.
LIFFE's benchmark December ended at 851 pounds a tonne, off 23 pounds, after changing hands at between 845 and 878.
"People are still sitting on the sidelines, the bounces have been modest, based on speculative buying which lacked any follow-through," a dealer said.
"Funds are still low so there could be another washout...Industry are just biding their time," he added.
Selling came from speculators, and origin offers were absent this session, traders said.
The imminent start of Ivory Coast hedging was weighing on sentiment, though.
The December contract's daily turnover was the highest since mid-August, with 4,341 lots trading from a total of 7,072.
March ended at 875 pounds, down 22 on turnover of 1,492 lots.
The September contract expired on Wednesday.
COFFEE HIGHER: London robusta coffee futures settled higher on Thursday after making a late recovery on stronger New York prices, traders said.
LIFFE's benchmark November coffee closed up $11 at $661 a tonne - just below resistance at $664 - after turning over 3,856 lots in a $639-663 range.
Prices reversed earlier losses when US prices jumped, taking NYBOT's December arabica coffee to a three-month high of 79.50 cents a lb.
"New York helped very late in the day," a trader said.
Traders noted spread activity after the discount between November and other contracts widened in earlier trading.
Further out, January advanced $12 to close at $678 on volume of 1,462 lots.
Total volume was 6,669 lots.
In news from Brazil, analysts Safras e Mercado said on Thursday that farmers had picked 92 percent of an estimated 41.30 million bag harvest.
That compared with 98 percent picked at the same time last year. Safras expects the harvesting to be over by the end of the month.
Comments
Comments are closed.