US cocoa open-outcry futures contracts closed higher Friday in a fund-driven market with dry weather in West Africa's cocoa belt underpinning prices, dealers said. "You had predominantly fund buying and selling on both sides of the market with a little bit of trade selling coming in," one trader said.
The benchmark May contract climbed $17 to settle at $1,793, in a trading band from $1,778 to $1,804, while July firmed up the same at $1,820, in dealings from $1,806 to $1,827. One contract aside, the rest settled in a range from $11 to $17.
The benchmark May contract trading on the IntercontinentalExchange NYBOT electronic platform was up $10 at $1,786, at 12:53 pm EST (1753 GMT). July rose $11 at $1,814. Electronic trading ends at 3:15 pm.
Prolonged dry weather in No 1 cocoa grower Ivory Coast has been reported harming flowers and small pods, which exporters said will likely hurt the mid-crop output. The May contract has the potential to attract new buying and reach the contract high level at $1,812 per tonne on Monday, especially if the Commitment Futures Trading Commission report scheduled for release later on Friday shows neutral open interest, one trader said. Estimated volume around noon sat at 5,216 lots, while 13,200 were officially tallied on Thursday with 7,646 of these trading electronically.
Cocoa futures in London closed mixed with the Liffe May contract firming 3 pounds to 999 pounds, in dealings from 992 to 1,005 pounds, a seven-month high. Meanwhile, Nigerian cocoa prices were flat at 190,000 naira ($1,480) per tonne at the farm gate in the past month despite fears of a big shortfall in the 2006/07 crop, growers and buyers said on Friday.
But the price at Lagos, Nigeria's main export route, rose by 2 percent to 225,000 naira a tonne from 220,000 naira, driven by speculative buying as world markets touched new highs, buyers said.