NYBOT cocoa futures finished with modest gains on Tuesday, rebounding from losses as speculative buying supported the market and allowed contracts to settle just off their session highs, floor sources said. "The locals were selling it all day. They think the price is too high right here, so they are just looking for a big move on the downside," said one. Benchmark September cocoa settled $10 higher at $1,604 a tonne, after trading from $1,580 to $1,616.
December rose $9 on the day to end at $1,618, after moving in a $33 range of $1,597 to $1,630, while the rest of the board closed up $8 to $9. "I think we have more room on the upside.
There is a point coming up where we will sell off, but not just yet," said one dealer. Cocoa futures began the day up $12 to $15 on some spec buying but was met with local selling, which pressured prices to their lows.
Final estimated cocoa futures volume on Tuesday reached 8,922 lots compared with 6,264 lots on Monday.
Open interest in the cocoa market gained 677 to 102,906 lots as of July 26.
Support in September cocoa was pegged at $1,570, and then at $1,530, while resistance was seen at the $1,650 level and then at $1,690 a tonne.