NEW YORK/LONDON, April 7, 2011 -Cocoa futures finished slightly lower as the conflict in top growerIvory Coast intensified, with United Nations peacekeepers surrounding the defenders of the nation's incumbent leader Laurent Gbagbo.
Cocoa futures were little changed as the U.N. sent forces into the neighborhood where Gbagbo was believed to be holed up in his heavily defended compound, but did not plan to intervene.
"The market is just not willing to do much until the situation in the Ivory Coast clears out," one cocoa dealer said.
Ivory Coast's presidential claimant Alassane Ouattara is expected to announce within days the end of a ban on exports of cocoa, his U.N. envoy said just before the trading session ended. Shippers said Ivorian cocoa exports will take a couple of weeks to resume once Gbagbo steps down and security in the world's top producer stabilizes.
"The cocoa market has come off quite significantly in the past month due to the prospect of cocoa exports freeing up," a senior analyst with a large trade house said.
ICE cocoa futures prices have fallen by one-fifth since hitting a 32-year high at $3,775 per tonne a month ago. ICE July cocoa finished down $12 at $3,002 a tonne, with dealings dominated by May/July spreading, while Liffe July cocoa dropped 7 pounds to close at
1,914 pounds per tonne.
* Key July cocoa futures finished down $12 at $3,002 a tonne.
* May/July position rolling dominated the day's heavy volume ahead of first notice day for May on April 15 - traders.
* United Nations peacekeepers surrounded the "last defenders" of Ivory Coast's incumbent leader Laurent Gbagbo, after a week of heavy fighting to unseat him, France said.
* "The market is just not willing to do much until the situation in the Ivory Coast clears out." - one cocoa dealer.
* Ivory Coast's presidential claimant Alassane Ouattara is expected to announce within days the end of a ban on exports of cocoa, bringing the country's cocoa sector close to a return to normalcy - envoy Youssoufou Bamba.
Source : Reuters
