Cocoa Falls on Rising West Africa Supplies; Sugar, Coffee Slump
Cocoa fell to a one-month low on signs that rising supplies in Cameroon and Ivory Coast, the world’s largest producer, will compound a global production surplus. Sugar and coffee declined.
Cocoa deliveries to ports in Ivory Coast climbed 25 percent to 1.35 million metric tons in the season to date, a document obtained from the industry’s regulator showed. Cameroon said today that production in June more than doubled from a year earlier to 6,840 tons. On July 22, Rabobank International boosted estimates of the global surplus by 51 percent to 292,000 tons for the year that ends in September.
“We’ve seen a real uptick in the availability of cocoa coming out of West Africa,” Luis Rangel, the vice president of commodity derivatives at ICAP Futures LLC, said in a telephone interview from Jersey City, New Jersey. “Bean availability has been going up in the last several weeks, and people are now fully aware of the higher production numbers.”
Cocoa futures for September delivery declined $62, or 2 percent, to settle at $2,974 a ton at 12:02 p.m. on ICE Futures U.S. in New York, after touching $2,972, the lowest for a most- active contract since June 27. Prices, down 1.2 percent from a year ago, have declined 5.6 percent this month.
Raw-sugar futures for October delivery dropped 1.21 cents, or 3.9 percent, to settle at 29.92 cents a pound on ICE, the biggest drop since July 14.
Arabica-coffee futures for September delivery retreated 2.55 cents, or 1.1 percent, to settle at $2.3865 a pound in New York.
In London, cocoa, sugar and coffee dropped on NYSE Liffe.
To contact the reporter on this story: Justin Doom in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org