London cocoa posts moderate gains

18 Aug, 2004

Liffe cocoa futures posted moderate gains amid renewed short covering demand on Tuesday in a market that saw volumes up on a strong bout of spread activity in nearby contracts, traders said.
Most-active December gained 15 pounds a tonne after shifting a substantial 16,511 lots to settle at 934 pounds, recovering from an earlier trip lower than took it through support at 900 and down to 897.
"There's a lack of selling and some short covering," one trader said.
Total volume reached a hefty 33,681 lots, although traders said spread-driven trade over the two front months was responsible for much of the business.
In fundamentals, weather forecasts for West Africa were for occasionally heavy showers and thunderstorms, forecaster Meteorologix said.
Traders say the market has been awaiting wetter weather in the region to help compensate for a dry spell during June and July, which some had feared could cause crop damage.

Read Comments