US benchmark cocoa futures rose to a new three-week top on Wednesday, extending this week's rally on follow-through speculative buying and a limited producer selling, traders said.
The New York Board of Trade's cocoa contract for September delivery settled up $18 at $1,555 per tonne after trading from $1,530 to $1,560 the priciest for the contract since July 17.
December cocoa gained $20 to $1,602 a tonne and longer-dated cocoa futures advanced $18 to $20. "There was a lot of spec and fund buying," a trader said, speaking from the NYBOT cocoa ring.
He said automatic buy stops were elected when the September contract surpassed the previous session's peak trade of $1,546. Traders estimated final futures trading volume at 16,770 contracts, with contract switches accounting for about 10,000 lots.
"There is a lot of rolling getting done," said a trader, referring to market participants switching out of the September contract before its first notice for delivery on August 18. Trade activity was mixed and producer selling was thin, with a small amount of cocoa hedging seen coming from Brazil, the trader said.
In London, the Life's September cocoa contract ended up 11 pounds at 863 pounds a tonne. Market players await the West African 2006/07 main crops, which could start as September in No 1 cocoa producer Ivory Coast.
In Ghana, the world's second biggest cocoa producer, strict enforcement of quality control rules is delaying transport of cocoa from inland depots to ports, private buyers said on Wednesday.
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