DJ ICE Cocoa Review: Slips As Traders Eye Production Potential
NEW YORK (Dow Jones)--Cocoa prices slipped in seasonally light trade Tuesday
as outlooks for a healthy fall harvest develop.

Nearby cocoa for September delivery cocoa settled $24, or 0.8%, lower at
$3,058 a metric ton on ICE Futures U.S.

Cocoa prices have been stuck in a tight range of $2,900 to $3,200 a ton since
May. During the summer months, cocoa production in the world's key producers is
noticeably lighter. At the same time, demand from end-users tapers off. But
trade picks up in the fall when West Africa begins to harvest beans and
confectioners and manufacturers buy to prepare for the winter holidays.

"We don't expect big problems with the crop in West Africa," said a New
Jersey-based cocoa broker and analyst. "That's going to keep us from any
sustained rally."

Periodic showers favor cocoa areas of Sulawesi, Indonesia, according to
private forecaster Meteorlogix. Malaysia also has seen some increase in
rainfall recently, helping to improve conditions for these trees as well,
Meteorlogix said.

Volume was estimated at 19,199 contracts to the point of settlement,
according to exchange data. In options, approximately one call and 475 puts
traded on the floor.

ICE cocoa open interest--the number of active positions left at the end of
the session--increased by 155 positions Monday to total 123,060, the exchange
reported.

Close Change Range (To the point of settlement)
Sep $3,058 -$24 $3,046-$3,112
Dec $3,091 -$20 $3,077-$3,138