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CSCE cocoa

dips

NEW YORK: CSCE cocoa settled sharply lower across the board Friday, pressured by lower-than-expected US first quarter grind data, traders said.

The grind, a key barometer of consumption, rose 0.26 percent versus the same year-ago period, to 79,044 tonnes, the Chocolate Manufacturers Association said. Analysts had anticipated an increase of between three and 10 percent, with most anticipating a rise of about six percent.

"It was not nearly as positive as the market expected," said Refco analyst Ann Prendergast. "Overall they were just disappointing."

Most-active July ended $20 lower at $1,335 per tonne, traded from $1,356 to $1,332. Spot May settled down $17 at $1,318, while the back months closed $19 to $24 lower.

Traders pegged support for the July contract at $1,330, and said break below that level could drive prices to a gap formed late last month between $1,316 and $1,301 a tonne.

Volume was light at an estimated 6,305 lots.-Reuter