20000107

CSCE cocoa ends slightly down in thin trade

NEW YORK: CSCE cocoa futures settled slightly lower on Wednesday in a lethargic bean market unsure of its direction.

"Cocoa prices seem to be entrenched largely because there's plenty of cocoa worldwide," said Ann Prendergast, softs analyst with Refco Inc.

Active March cocoa fell $5 to finish at $831 a tonne, trading between $850-$828. May lost the same to end at $856. July fell $3 to end at $885. Back months ended $5 easier.

Bean prices were down in light trade and volume in a market that struggled to find any event that would move prices.

"The Asian financial crisis' impact is still lingering in cocoa consumption. There's plenty of cocoa around and there's no strong demand to put any pressure on things," Prendergast said. LIFFE cocoa ended narrowly mixed, pushed around by currency considerations. Benchmark March LCCHO closed at 560 pounds a tonne, down one pound, trading between 567 and 558.

Technically, chartists pegged resistance for March CSCE cocoa at $844-$847, while nearby support was seen between $820-$815.

Volume traded reached an estimated 5,846 lots against the previous official 2,865 lots. Call volume touched 1,578 lots while put volume reached 484 lots. In physical business, Ivory Coast's new military ruler, General Robert Guei, said on Wednesday that external debt repayments had been temporarily suspended to allow payment of salaries to civil servants and army soldiers of the world's No. 1 cocoa growing country. The CSCE is a subsidiary of the New York Board of Trade.-Reuters