London NYSE Liffe saw no evidence of abusive trading behaviour on the July cocoa contract that expired last week with the physical delivery of almost all London's cocoa stocks, it said in a letter to a group complaining of excessive speculation in cocoa futures.

"From our investigations there is no evidence of abusive behaviour or that any market participant is trading with the specific purpose of distorting the price of the July 2010 delivery month," said the letter from the exchange, dated...

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Talks are expected to begin between European cocoa players and the governors of the London futures markets (LIFFE) in regards to speculation in the commodity following a threat by traders through a letter sent to Liffe where the traders consider to switch to the New York cocoa futures market. Dealers reportedly felt that fund buying had pushed London cocoa futures LCCc2 to a 32-year high of €2,461 last week. The cocoa producers, in their communicationto Liffe, threatened to reconsider their...

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