From Dow Jones:
ICE Dec cocoa futures fell to new 13-month lows Thursday morning on follow-through sales. The market continues to decline amid expectations for a larger Ivory Coast crop, with bearish technicals also providing pressure. The market remains extremely oversold and due for a bounce. ICE warehouse stocks fell 21,210 bags to 3.567 million bags.
"The weather still looks pretty good out there," says Jack Scoville, analyst and vice president at Price Futures Group in Chicago. While there has likely been producer buying near the lows, most end-users have covered current needs, he says. The path of least resistance remains lower for futures prices.
The global cocoa deficit will widen to 72,000 metric tons in 2010-11, due to increased demand for chocolate, the International Cocoa Organization says. World cocoa grindings--a measure of demand--are seen rising to 3.632 million tons in 2009-10, up 3,000 tons from a previous forecast, the ICCO says.