Cocoa Futures Prices Fall

Cocoa futures prices fell sharply Tuesday on the Coffee, Sugar & Cocoa Exchange as supply shipments began to ease concern about crop problems in Africa.

“Physical arrivals are starting to pressure the market,” said Kim Badenhop, a cocoa analyst with Merrill Lynch Futures.

He said shipments from the Ivory Coast of Africa and from Brazil have offset support that had developed earlier because of crop problems in Western Africa.

Grain and soybean futures prices were mostly lower on the Chicago Board of Trade.

Prices remained in a narrow range in a dull session as there were few major developments in the market to influence prices.

Shipping through the St. Lawrence Seaway was halted by a damaged lock, however, and analysts said that could prompt some selling, particularly in the wheat pit, as shippers are unable to move the grain that they already purchased.

An official of the Seaway said the canal could be blocked for several weeks while repairs are made.

Corn prices were slightly lower even though major commercial concerns were big buyers.