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Cocoa futures

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NEW YORK: CSCE cocoa futures ended sharply higher after a late buying surge by commodity funds, dealers said on Friday.

September cocoa rose $18 a tonne to $1,297, but once again fell short of the psychological $1,300 barrier. The contract traded between $1,274 and $1,298. December rose $30, to $1,330, while the deferreds climbed $26 to $28.

Volume was estimated at a total of 9,015 lots.

The funds returned to the market late in the session to square short positions, traders said, but origin-type selling at the highs capped further gains.

Friday's firmer close - which fell $1 short of Wednesday's one-month high - should give the market an improved technical stance heading into next week, they said.

"Maybe we've seen the bottom temporarily," said one trader.

The week was highlighted by talk Ghana had sold some 70,000 tonnes to a number of leading trade houses, which in turn sold the product to European and U.S. end-users.

Sources said the deals had been not been hedged against the futures contracts.-Reuter