DJ ICE Cocoa Review: Falls In Light-Volume Spread Trade
NEW YORK (Dow Jones)--Cocoa prices slipped Thursday in seasonally thin spread
trading.

Nearby cocoa for September delivery cocoa settled $5, or 0.2%, lower at
$3,113 a metric ton on ICE Futures U.S.

Cocoa prices are trading in a seasonal lull. Trade is light during the summer
months as production in West Africa is light, as is demand. Cocoa trading
volume picks up nearer to Oct. 1, the official start date of the cocoa harvest
in Ivory Coast, the world's top producer. Confectioners and food manufacturers
also begin to stock up on beans at that time to prepare for the winter
holidays.

Cocoa prices had early support from the weaker dollar but fell below
unchanged by the settlement as the greenback firmed. The market continues to
hold the $2,900-$3,250 range.

Much of Thursday's trading volume consisted of rolling from the September
contract to December.

"It's not finding a lot of outright momentum or any news to speak of at the
moment," said a New Jersey-based cocoa broker and analyst.

Volume was estimated 19,347 contracts, according to exchange data. In
options, approximately eight calls and 1014 puts traded.

ICE cocoa open interest--the number of active positions left at the end of
the session--increased by 621 positions Wednesday to total 124,250, the
exchange reported.

Close Change Range (To the point of settlement)
Sep $3,113 -$5 $3,092-$3,156
Dec $3,138 -$1 $3,116-$3,180