950803

Cocoa ends

sharply higher

NEW YORK: CSCE cocoa futures surged late in the session Wednesday to settle at its highest level since July 5 amid heavy speculative buying, industry sources said.

Cocoa soared $47 a tonne, reaching a peak of $1,307 before trade selling knocked the market off its highs, dealers said.

Traders said the rally was technically-motivated once buy stops were triggered above $1,285. The overall fundamental outlook remained bearish, they said, but the creation today of a new short-term technical bottom could spark another bull run tomorrow.

"I think we'll try for $1,315 or $1,320 tomorrow," said one trader.

September cocoa rose $37, to $1,298, settling just below the key psychological barrier of $1,300. December jumped $32, to $1,321, while the remaining months shot up $33 across the board.

Volume was heavy, at an estimated 18,958 lots. Over half the day's turnover occurred during the final hour of trading.-Reuter