Cocoa Futures Rise in N.Y. on Production Shortfall; Coffee Little Changed

Cocoa rose for the first time in three days on speculation that output will trail demand after exports fell from Cameroon, the fifth-biggest producer of the beans. Coffee gained for a second session.

Cocoa shipments from Cameroon dropped 35 percent in March, the Cocoa and Coffee Interprofessional Council said yesterday. World output will lag behind demand in the 2009-2010 season, Fortis Bank Nederland NV and VM Group said last week. Grindings, an indication of demand, will advance 3.3 percent from a year earlier, they said. Cocoa gained 30 percent in the past year.

“The fundamentals are strong,” said Tom Mikulski, a senior market strategist at Lind-Waldock, a broker in Chicago. “There is a lot of fund-buying.”

Cocoa for July delivery gained $18, or 0.6 percent, to $3,211 a metric ton on ICE Futures U.S. in New York. The commodity should rise to $3,250, Mikulski said, without giving a timeframe.

In the week ended April 20, hedge-fund managers and other large speculators increased their net-long position in New York cocoa futures by 15 percent from a week earlier, government data.

On London’s Liffe exchange, cocoa for July delivery rose 13 pounds, or 0.5 percent, to 2,396 pounds ($3,670) a ton.

In another ICE market, arabica-coffee futures for July delivery rose 0.7 cent, or 0.5 percent to $1.346 a pound in New York. Yesterday, the price gained 2.3 percent.

To contact the reporter on this story: Debarati Roy in New York at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.