US cocoa futures sink

04 Jan, 2009

US cocoa futures fell on Friday, giving back all of the steep gains made the last day of 2008, in chart-based dealings made more volatile by thin volume following the New Year's Day holiday, traders said. The market was closed Thursday for New Year's Day. Benchmark March sank $125, or 4.7 percent, to end at $2,540 per tonne. Wide range from $2,494 to $2,649.
The electronic platform trades until 2:45 pm. Market tumbled in a technical correction after it surged to close up 5.4 percent Wednesday, from the previous session, in thin holiday dealings traders. US cocoa futures fell easily as many market participants remained away from their desks between New Year's Day and the weekend traders. Weak pound against the US dollar also added pressure traders.
Wednesday's settlement marked a 31 percent climb for the spot month on the last trading day in 2008, compared with one year ago. Voting went ahead on Friday in the final constituency in Ghana's presidential run-off despite a boycott by the ruling party, which was trailing narrowly in the election and tried to have the ballot postponed. Ghana is the world's second-biggest cocoa producer.
With the exception of the chance of afternoon thundershowers in the south-east portion of West Africa, otherwise dry conditions forecast through Saturday - DTN Meteorlogix. No significant rainfall expected Sunday through Tuesday DTN Meteorlogix. Total volume Wednesday reached 4,263 lots exchange data. Open interest in the cocoa market at 116,395 lots by December 31, compared to the previous 116,641 lots - exchange data.

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