Cocoa loses some of last week's gains

London cocoa futures fell on Monday, giving up some of last week's steep gains.

Liffe's March contract fell to a four-week low in early morning trading, while in New York the CSCE cocoa contract opened sharply lower, taking its cue from London cocoa futures.

"This market has been due for a healthy correction," a desk broker said. Cocoa prices were approaching a three-year peak last week, amid declining estimates of crops from the leading growers, Ivory Coast and Ghana.

The New York market was also unsettled by Friday's Commitments of Traders report, which showed funds and small speculators held a larger net long position than most brokers had expected.

The Liffe March cocoa contract closed down ?40 at ?967 a tonne, after touching a low of ?941. CSCE March cocoa closed $56 lower at $1,301 a tonne.

Crude oil futures fell, with London Brent falling through support at $20 a barrel. Traders said the market was depressed by worries about demand. They cited large heating oil stocks and the fact that poor profit margins had reduced demand.

In London the February Brent contract ended $1.08 lower at $19.78 a barrel. By the close in New York Nymex WTI had fallen 79 cents to $18.89 a barrel.

Silver, which hit its best levels in more than a year last week, edged lower as prices in the leasing market eased. The metal fixed at $4.67 a troy ounce, compared with last Thursday's high of $4.85.