With the NYSE Liffe exchange in what is known as backwardation, with July futures now more expensive than later-dated contracts, cocoa purchases in Europe slowed last week. "In principle, the backwardation in London should encourage the selling, but if the demand is not there, buying up the supply chain should slow," said Rabobank analyst Keith Flury. "It seems to me no one would want to stockpile anything in the European market."

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