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LCE cocoa reverses

after New York losses

LONDON: London cocoa futures slipped in thin conditions on Tuesday, reversing from an early blip up after a disappointing New York performance, traders said.

New York snubbed a higher opening call and came under pressure from mixed speculative and long liquidation, pushing London prices lower.

"People (in New York) are getting impatient with the market," said one trader.

The benchmark July contract lost 10 stg on the day to close at 1,108 stg a tonne after trading in the 1,115 stg and 1,125 stg range.

"It was quite a good range in the day," said the trader.

The market was easily bid up in early dealings by trade buyers whilst sellers were absent, traders said.

But industry buyers continued to be sidelined, awaiting further declines.

September also crumbled under resistance, sliding 10 stg to 1,128 stg at the close. Its key premium to March narrowed to 84 stg after 92 stg at midday.

Traders said a reduction in net speculative long position in Friday's Commitment of Traders Report could be seen bullish but could also indicate nervousness among the New York players.

"It's not just a case of how much can funds buy more," said one.

The pass rate of London gradings was improving -- total to date stood at 8,085 lots of which 1,599 were untenderable.

Turnover on the Exchange was a modest 3,518 lots.-Reuter