US MIDDAY: cocoa sinks on trade, profit-taking

02 Jun, 2004

CSCE cocoa futures settled lower Tuesday, pulling back from a near 1-month high, as prices mirrored a downside reversal in London market, as hedge and trade selling and profit-taking there pressured prices, traders said.
"We followed London lower today on some spec and trade selling after the market's failure to attract any buyers this morning," said a broker.
Benchmark July cocoa slipped $42 to finish at $1,423 a tonne, after trading from $1,405 to $1,454 a tonne.
September cocoa settled down $37 to $1,435 a tonne, moving in a $1,419-$1,462 tonne range. The rest of the board closed $33 to $35 weaker. Technicians saw first support in July cocoa at $1,400, then $1,380 a tonne, while resistance was pegged at $1,475, then $1,500.

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