I've been watching and waiting some time to buy cocoa. It appears that moment may soon be upon us.
Aug 31 - Cocoa futures on ICE fell to the lowest levels in more than one-year on Tuesday, weighed both by generally favourable crop prospects in West Africa and broad-based losses in oil and other commodities.
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Arabica coffee and raw sugar futures on ICE were also lower as concerns about the economic outlook triggered losses in global equity markets.
Liffe markets reopened on Tuesday following a U.K. holiday with cocoa quickly setting an 11-month low.
"Clearly, for the short-term at least, the more bearishly-inclined have the upper hand (on cocoa), driven partly no doubt by the flow of news stories and comments forecasting a much better 2010-11 crop out of Ivory Coast," ABN AMRO said in a report issued on Tuesday.
"As prices have retreated, industry buying has stepped up significantly, suggesting industry cover has been rather lower than might have been imagined," the report added. December cocoa futures on ICE fell $17 to 0.6 percent to $2,697 a tonne by 1147 GMT after earlier slipping to $2,690, the lowest level for the second month since mid-July 2009.
Prices in London also fell with December down 10 pounds at 1,921 pounds a tonne after earlier hitting an 11-month low of 1,915 pounds.
Dealers also noted the nearby premium continued to decline as concern about tightness in available supplies to tender against September diminished.
