DJ ICE Cocoa Review: Rises; Speculative Buying, Commodity Gains
DOW JONES NEWSWIRES


Cocoa futures for September delivery climbed Wednesday on speculative buying
linked to the overall gains in soft commodities, though prices remained in a
trading range.

Nearby September cocoa added $30, or 1%, to settle at $3,010 a ton on ICE
Futures U.S., near the session peak of $3,018.

Cocoa prices found support on speculative buying in the soft commodities
sector that also took sugar, coffee and cotton higher. Prices remained within
recent trading ranges, however, in seasonally light dealings.

"It looks like we're seeing some commodity fund money coming in to the cocoa
market and lifting us off the lows," said Sterling Smith, analyst at Country
Hedging in St. Paul, Minn.

"We are now at the top end of our most recent range," he said.

September cocoa reached a session peak of $3,018 before the bullish momentum
waned slightly. The contract could not take out Tuesday's high of $3,026,
however, a nearby chart resistance level where selling is expected to increase.

September finds additional resistance near $3,050, a broker said.

Cocoa is in a seasonally quiet period as demand during the summer months
softens and supplies trickle in from West Africa. Top grower Ivory Coast has
already harvested its smaller mid-crop and producers won't begin gathering the
much larger main crop until late September or early October.

Recent rainy weather in Ghana and Ivory Coast is deemed favorable for the
developing main crop, though too much moisture increases the risk of disease,
private weather forecaster DTN Meteorlogix said.

London cocoa futures fell as the pound strengthened slightly against the
dollar. September cocoa traded on NYSE Euronext's Liffe fell GBP9, or 0.39%, to
GBP2,271 a ton.

Open interest in ICE cocoa fell 235 to total 125,385 contracts, the exchange
reported.

Volume is pegged at 6,445 contracts, with 203 calls and 903 put options
traded.

ICE Change Range
Sep $3,010 up 30 2,983 - 3,018
Dec $3,034 up 31 3,007 - 3,042
* ICE settlements in dollars per metric ton with intraday range.