US cocoa futures settled modestly higher on Friday as prices continued to trade at the lower end of their recent range following this month's precipitous sell-off, sources said. "As far as I'm concerned, this market is still trying to find a bottom," said one cocoa dealer, referring to the 15 percent decline from the market's 16-month high at $1,738, set on July 11.
The New York Board of Trade's benchmark September cocoa contract ended up $3 to $1,492 per tonne, after dealing between $1,488 and $1,501. The rest of the board closed up $2 to $3.
The September/December spread was also cited in the day's action, as market players looked to roll out of the front-month September contract on into December. As of July 27, open interest in September cocoa fell 1,691 lots to 60,162 lots, while interest in December grew 1,345 lots to 37,985 lots. Floor dealers said final estimated cocoa futures volume reached 8,202 lots, a shade below Thursday's official count at 9,763 lots.
On the fundamental front, cocoa arrivals at ports in Ivory Coast crept up to 1,306,092 tonnes by July 23, compared with 1,273,618 tonnes delivered to ports at the same period in the 2004/05 season, major exporters estimated on Friday. They added that the flow of cocoa from the bush in the world's No 1 grower had slowed to a trickle.
"The beans coming in from the bush are getting smaller and smaller, and there are fewer and fewer beans coming from the growing areas to the ports," said one trader in south-west Ivory Coast who works for an international export company. Forecaster Meteorlogix expected the West African cocoa belt to experience scattered showers and thunderstorms in northern areas, with temperatures near normal.