US cocoa ended at a seven-week low on Friday, after a choppy session on continued fund liquidation, traders said. "With the (September) option expiry today, some people were trying to defend $1,900, so they didn't get stuck with being short the market under $1,900 on a put basis," one dealer said.
The New York Board of Trade's benchmark September cocoa contract closed $21 lower at $1,893 per tonne, in a trading band from $1,927 to $1,890, a low last seen June 14.
December ended $20 lower. The September contract trading on the IntercontinentalExchange NYBOT electronic platform was $27 lowers at $1,887 at 1:28 pm EDT (1728 GMT), in dealings from $1,885 to $1,928. The rest ranged from $19 to $30 lower. "I think the trade did their best to make the market have a poor technical close here on the week basis," one trader said.
On the London market, cocoa futures fell to a three-month low, with improving main crop prospects in top producer Ivory Coast weighing on the market. The Liffe September cocoa contract ended down 15 pounds near the session low at 976 pounds per tonne, in dealings from 975 pounds to 1,001 pounds.
In related news, cocoa arrivals at ports in Ivory Coast from October 1 to July 29 reached 1,165,551 tonnes, compared with 1,311,659 tonnes in the same period last year, exporters said on Friday. Open-outcry volume around noon was estimated by the exchange at 2,199 lots, compared to 2,397 lots tallied on Wednesday when 10,909 contracts traded electronically.
Weather in West Africa, forecaster DTN Meteorlogix said continued scattered showers and thundershowers will bring 0.1 to 1 inch of rain on Saturday.
Comments
Comments are closed.