Cocoa Climbs as Dry Weather May Curb Production; Coffee Falls
Cocoa gained for the first time in three days in New York on speculation dry weather will cut output in West Africa, supplier of about two-thirds of the world’s crop. Arabica coffee slid and sugar rose.
Ghana’s western region, the largest growing area of the second-biggest producer, got 4.5 millimeters (0.2 inch) of rain from Aug. 1 to Aug. 10 in three towns monitored, data from the Ghana Meteorological Agency showed. That compares with 35.4 millimeters a year earlier. Neighboring Ivory Coast is the biggest cocoa grower.
“Current weather conditions are not supportive for the main crop harvests in West Africa,” Keith Flury, an analyst at Rabobank International in London, said in a report e-mailed yesterday. “We expect further upside.”
Cocoa for December delivery rose 0.5 percent to $2,412 a metric ton by 7:32 a.m. on ICE Futures U.S. in New York. Cocoa for December delivery gained 0.2 percent to 1,617 pounds ($2,538) a ton by on NYSE Liffe in London.
Global demand may outpace supply by 133,000 tons in the 2012-13 season, or 270,000 tons if El Nino returns, Flury said. There are renewed signs that El Nino is forming, Australia’s Bureau of Meteorology said Aug. 14.
Raw sugar for October delivery added 0.2 percent to 20.20 cents a pound in New York. White, or refined, sugar for October delivery fell 0.3 percent to $558.10 a ton in London.
Arabica coffee for December delivery fell 0.7 percent to $1.607 a pound on ICE, the seventh consecutive decline, the longest losing streak for a most-active contract since Feb. 16. Robusta coffee for November delivery was unchanged at $2,103 a ton NYSE Liffe.
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