London cocoa futures closed down from the previous session's six-week high on Friday as the market consolidated but traders said the past week's recovery in prices could continue after the weekend. Liffe's benchmark March posted a loss of 11 pounds, or 1.3 percent, closing at 853 pounds a tonne. It moved between 852 and 869 on turnover of 2,413 lots. A total of 6,751 lots traded.
"Today we saw some trade selling and a bit of profit taking by some of the longs," a dealer said. "It went up a bit too fast. I think it can make it another 40-50 pounds higher over the next three weeks. It's got more room to go but not straightaway," he added.
liffe cocoa values have been picking up from a six-month low of 812 pounds hit on January 11 as the market recovers from a bout of fund selling linked to changes in commodity indices. Bullish fundamentals are also helping prices to firm.
German cocoa trading was depressed this week while butter ratios for nearby delivery positions were again firmer because of continued tight supplies, traders said on Friday.