London cocoa little changed

05 Aug, 2004

London cocoa futures ended little changed on Wednesday after earlier scoring a fresh seven-month high, with lower volumes suggesting funds may be slowing down their buying spree, traders said.
Liffe December contract settled at 1,012 pounds a tonne, up one pound.
Volume dropped to 3,163 lots out of a daily total of 6,883 from Tuesday's score of 7,871 lots from a tally of 13,965.
"There seems to be a bit of a loss of upside momentum, we do need some consolidation," said one dealer, though he added that it was too early to tell if funds are done with extending their long position.
A recent acquisition campaign by funds has inflated cocoa bean values by more than 30 percent to the highest level since mid-December.
At the same time, a drier-than-usual June and July has stoked concern about the growth of crops in Ivory Coast, which produces about 40 percent of the world's cocoa beans.
The market is keeping its eye on weather reports after agronomists said that rainfall is crucial during the coming two weeks to avoid crop damage.

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