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Cocoa weaker

NEW YORK: CSCE cocoa ended weaker and in the middle of the day's range in volatile trade Thursday after active May soared to its highest level in over four months early on.

Dealers said follow-through speculative buying at the open extended the market's recent gains, but that intense trade selling drove prices down. Local short covering and light trade buying later lifted prices near unchanged, they said.

May cocoa closed $3 weaker at $1,341 per tonne, after ranging widely from $1,362 to $1,317. Second-month July ended down $3 at $1,354, while the back months ended down $7 to $18.

The U.S. Agriculture Department said Thursday it estimated world cocoa bean production at 2.71 million tonnes in 1995/96, up 12 percent from the previous year. A large part of the increase was attributed to an estimated production of 1.07 million tonnes for Ivory Coast, including 120,000 tonnes of mid-crop beans, USDA said.

The first-quarter 1996 U.K. cocoa grind, expected to be announced Thursday, was postponed till April 9. Analysts have forecast a five to 10 percent rise in the U.K. grind.

The market will be closed Friday, April 5, for Good Friday and will resume trading Monday April 8.-Reuter