US benchmark cocoa futures sagged amid modest trading on Wednesday, with the benchmark contract shedding about 0.1 percent as market players squared positions for the month's end, traders said.
The New York Board of Trade's active cocoa contract for December delivery eased $2 to settle at $1,404 a tonne, after trading within a narrow range from $1,396 to $1,415.
March lost $1 at $1,436 a tonne, and back month contracts slipped $5 to $6 on the day.
"There was light action today. There was some fund-related book squaring throughout the day and on the close," said a trader, noting futures trading volume at an estimated 5,172 contracts.
A weaker dollar against sterling supported the market, thanks to currency arbitrage positioning with the cocoa market in London.
By 11:50 am EDT (1550 GMT), sterling was quoted at about $1.80, compared with $1.7850 when the New York cocoa market closed the previous session. In London, the bellwether December cocoa contract settled down 3 pounds at 824 pounds a tonne.
On the supply front, major exporters in top cocoa grower Ivory Coast estimated bean arrivals at the country's ports reached 1,163,484 tonnes between October. 1 and August 18, down 12.5 percent from the same period during the 2003/04 season.