Cocoa Falls as Ivorian Concerns Ebb; Sugar, Coffee, Cotton Drop
Cocoa fell after Ivory Coast, the world’s top producer, set the annual price paid to farmers, easing concern that exports will be disrupted by industry changes. Sugar, coffee, cotton and orange juice dropped.
Ivorian farmers will get a minimum of 725 CFA francs ($1.48) for a kilogram (2.2 pounds) of cocoa beans in the 12 months that started Oct. 1, and a dispute on transportation and handling fees was resolved, the government has said. A majority of the crop will be sold before the harvest, and growers will get 60 percent of the export price, the government said.
“There has been so much speculation around the organization of the new Ivorian regime over the past year,” Eric Sivry, the head of agricultural options broking at Marex Spectron Group, said in a report.
Cocoa for December delivery dropped 1.2 percent to $2,446 a metric ton at 10:15 a.m. on ICE Futures U.S. in New York. Through yesterday, cocoa climbed 17 percent this year, partly on Ivorian supply concerns.
Raw-sugar futures for March delivery fell 0.8 percent to 21.41 cents a pound in New York.
Arabica-coffee futures for December delivery dropped 0.2 percent to $1.8325 a pound.
Cotton futures for December delivery slid 0.7 percent to 71.36 cents a pound.
Orange-juice futures for November delivery declined 0.5 percent to $1.155 a pound.
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