US benchmark cocoa futures prices ended down almost 1 percent in a quiet on Tuesday session, erasing the previous session's gains amid improving prospects for a good crop and peace in top cocoa grower Ivory Coast. "All together it seems like the market wants to come off, but we are not seeing people engage in it," said one trader, pointing to the relatively small trading volumes over the past few sessions. The New York Board of Trade's benchmark July cocoa contract shed $13 to settle at $1,490 a tonne, after trading in a narrow range from $1,488 to $1,516.
The September delivery lost $15 to end at $1,511, while longer-dated cocoa contracts fell $16 to $18. NYBOT estimated trading volume in cocoa futures reached 5,568 lots, slightly above the official 3,987 lots the previous session.
"The market is just lacking information right now," said one trader. "It's talk about the crop developments. But expectations seem to show a good setting."
In top cocoa growing country Ivory Coast, rainfall was above average in the last 10 days of April, fuelling optimism for a good April-September mid crop harvest, reported Reuters from Abidjan.
Meanwhile, Ivory Coast's army and rebel chiefs met on Tuesday for talks meant to agree a start date for disarmament, which would help revive efforts to end civil war in the West African country.
The talks will likely address a proposal by the national disarmament commission for both sides to start surrendering weapons on May 14 and for the process to end on July 31.
Traders and analysts say they await further news to give the market one direction or another. Dan Chelsea, an independent technical analyst, put key support in the July cocoa contract at $1,475, and then $1,400, with resistance between a gap of $1,550 and then $1,600.
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