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Cocoa futures

plummet

NEW YORK: CSCE cocoa futures ended sharply lower Tuesday on speculative profit taking, but the market held above key chart support levels, dealers said.

Prices faltered early amid arbitrage selling against the London market, then stalled until a late sell off brought values down toward the session lows at the close.

"It was all the people who got long at $1,357," said one trader, who added that a retracement down to the $1,314-$1,317 area was possible before the market could stage another move higher.

Traders said the market would likely remain range-bound for the next several weeks, until leading trade houses published updated estimates for the 1995-96 West African cocoa crop. U.K. brokerage GNI said earlier today Ivory Coast production could reach 910,000 tonnes in 1995-96, up from 820,000 in 1994-95.

Most active December slid $28 a tonne, to $1,330 on the day, after ranging from $1,328 to $1,351. Spot September fell $29, to $1,316, while the rest gave up $15 to $27.

An estimated 6,079 lots changed hands on the day.-Reuter