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CSCE cocoa ends volatile session flat to firmer

NEW YORK: CSCE cocoa settled barely firmer in rollercoaster trade Tuesday on speculative buying as the market continued to extend last week's gains, traders said.

Prices soared to near seven-week highs early in heavy volume on profit-taking and fresh fund buying, traders said, but trade selling pared gains.

May cocoa settled $2 higher at $1,310 per tonne, traded from $1,397 to $1,331, its highest level since February 15. Second-month July ended $2 better at $1,329, while the back months closed unchanged to $1 firmer.

Volume was estimated at 16,193 lots, with much of the activity in the morning.

Initial support for May cocoa was pegged at a downside gap to $1,281, formed by Friday's strong opening. Resistance was seen at $1,337.

The market has steadily recovered since the May contract hit a lifetime low of $1,205 on March 14, and one trader said the market's ability to hold firm today was positive.

Traders await U.K. and Dutch first-quarter grind figures expected this week.-Reuter