US MIDDAY: cocoa soars

21 Apr, 2007

US cocoa futures surged to close higher in a late-day rally Friday, after trade buying buoyed prices off earlier lows dating back nearly five weeks, traders said. "When we got down to that $1,825 level (basis July), trade buying was (high) in volume there and that's what gave the market a floor there," one trader said.
The New York Board of Trade's May contract climbed $35 to close at $1,887 per tonne, with trades ranging from $1,810 to $1,875. Benchmark July surged to close up 2.3 percent, or $42 higher, to $1,905 per tonne, after trading as high as $1,910, touching the technical gap created in the previous session. The session's low at $1,825 touched a technical gap dating back to March 19, for the second month on a continuation chart. The rest ranged from $42 to $45 higher.

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