LONDON, June 26 (Reuters): Cocoa prices on ICE steadied for a second day on Wednesday, with the recent price decent on hold amid improved weather, higher trade volumes, and with funds finished liquidating their long positions, for now.
September London cocoa was down 1.2 per cent to 6,561 pounds a metric ton at 1158 GMT, having closed up 0.3 per cent on Tuesday after losing nearly 10 per cent on Monday.
September New York cocoa fell 1.1 per cent to $7,764 a ton, after slipping 0.9 per cent on Tuesday following Monday's 11.1 per cent plunge.
Dealers noted improved volumes, and said there had been some sporadic interest in price hedging, which involves traders taking short futures positions to offset their long physical position and thus lock in a price.
The weather in West Africa has also improved, they said, though more rain is needed to improve the outlook for the upcoming 2024/25 crop.
Meanwhile, the cocoa futures curve remains heavily backwardated, they noted. This is despite the price retreat of the last few trading sessions, and indicates supplies remain extremely tight overall.
Blommer Chocolate, the largest cocoa processor in North America, launched on Tuesday a product it says it is a cheaper alternative to cocoa butter for confectioners that are struggling to keep up with rising costs for cocoa products.
Meanwhile, September robusta coffee fell 0.5 per cent to $4,095 a ton, way off this month's record high of $4,394.
Dealers said spot market prices in top robusta producer Vietnam have stabilised near record levels.
The Vietnam market remains tight however, with visible stocks at end-May at 238,020, down a hefty 171,078 tons versus a year ago.
September arabica coffee fell 0.6 per cent to $2.2795 per lb, having slid 2.9 per cent on Tuesday.
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