Cocoa rose to the highest price in almost three months, extending the longest rally since October, on signs of increasing demand and reduced supplies from Ivory Coast, the world’s biggest producer. Coffee gained and orange juice was unchanged.
From Oct. 1 to April 18, Ivory Coast farmers delivered 905,529 metric tons of cocoa beans to the country’s main ports, a 2.8 percent drop from a year earlier, according to data from the Bourse du Café et du Cacao. Global grindings, a sign of demand, will be almost 3.6 million metric tons in the year ending Sept. 30, up 3.3 percent from a year earlier, Fortis Bank Nederland NV and VM Group said April 23.
“An increase in grindings and also a few concerns over supplies from Ivory Coast” are boosting cocoa prices, said Dennis Cajigas, a senior market strategist at broker Lind- Waldock in Chicago. “We are looking at trying to pull our way out of the recession. That’s also increasing aggregate demand here in the longer term.”
Cocoa for July delivery rose $30, or 0.9 percent, to $3,228 a metric ton on ICE Futures U.S. in New York, after touching $3,235, the highest level for a most-active contract since Jan. 29. The commodity’s five-session rally is the longest since the eight sessions ended Oct. 22.
“We’re just seeing some continued technical buying, speculative and fund buying, as we continue to push to new monthly highs here today,” said Boyd Cruel, a Vision Financial Markets senior analyst in Chicago. “Funds trade on technicals. As we put new highs in here, they’ve just been adding to their positions.”
Should the July contract close above $3,235, the next target would be $3,350 to $3,360, Cruel said.
On London’s Liffe exchange, cocoa for May delivery rose 23 pounds, or 1 percent, to 2,328 pounds ($3,597) a ton. Earlier, the price touched 2,334 pounds, within 16 pounds of the 21-year high reached in January.
Arabica-coffee futures for July delivery rose 0.7 cent, or 0.5 percent, to $1.3265 a pound. The commodity has gained 11 percent in the past year.
Robusta coffee for July delivery fell $8, or 0.6 percent, to $1,328 a ton in London.
Orange-juice futures for July delivery were unchanged at $1.3695 a pound on ICE in New York. The price has advanced 6.1 percent this year.
To contact the reporter on this story: Elizabeth Campbell in New York at email@example.com.