Cocoa trimmed declines in New York after falling below the 50-day moving average. Sugar fell.
Cocoa fell as much as 1.4 percent to $2,140 a metric ton, below the 50-day moving average of about $2,153 a ton, on ICE Futures U.S. in New York. The European Cocoa Association said on its website yesterday its first-quarter report on European cocoa grindings, a sign of demand, is due April 17.
“New York just went below the 50-day average and may be resulting in technical selling,” Keith Flury, an analyst at Rabobank International in London, said by e-mail today. “The market will likely stay in this range until the grinding data starts coming out.”
Cocoa for May delivery dropped 1.1 percent to $2,149 a ton by 7:38 a.m. in New York on ICE Futures. Selling on NYSE Liffe in London may have been triggered after prices failed to close above the 100-day moving average yesterday, Flury said. Prices in London were down 0.8 percent.
Cocoa demand will probably strengthen this year, helping push prices in New York to $2,400 a ton by the fourth quarter, Commerzbank AG said in a report today.
Raw sugar futures dropped 0.1 percent to 17.58 cents a pound and arabica coffee climbed 0.2 percent to $1.3635 a pound.
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