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Low prices revive European cocoa trade
REUTERS
London: Currency movements and low terminal prices enticed European manufacturers to buy this week, cocoa traders said on Friday. "Whenever the market is on the low side and the currency is also favourable, we always have good business with the European industry," one trader said. Sterling's drop against the euro earlier in the week had provoked some interest, although the rate was largely stable on Friday. One trader reported good interest from eastern Europe, notably from Russia. Traders noted that selling by Ghana had been absorbed reasonably well by the London market."You've seen the market come down and make new lows in New York. We've had all these Ghana sales, which I think have been absorbed quite well," one said. But stocks in Europe remained plentiful, albeit of a mediocre quality, leaving manufacturers in a strong position. "The industry have put the (Ghana) cocoa in their books and they are quite relaxed. There are plenty of questionable qualities around," one European trader said. "Even if there's trouble in Ivory Coast, they have enough for some time." Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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