US benchmark cocoa futures rallied 2.8 percent to a three-week high Wednesday, boosted by speculators short covering and funds buying on positive technical signals on the price charts, market sources said.
"It looked like some small spec short covering," said a cocoa trader. "It looked like a technical rally. The market got oversold and I guess it finally did something," he said.
The New York Board of Trade's active cocoa contract for May delivery rose $40 to settle at $1,493 a tonne, the loftiest finish since February 15.
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