Cocoa rebounded in New York as manufacturers take advantage of low prices to build stockpiles.
Cocoa has dropped 2.6 percent this year as rain boosted crop prospects in West Africa, the world’s largest growing area. The cocoa industry probably holds about eight months of “forward cover” to meet future needs, according to Marex Spectron Group Ltd. in London.
“The industry is holding a reasonable amount of forward cover,” Eric Sivry, head of agriculture options brokerage at Marex in London, said in a report e-mailed today. “Lower prices may have negative implications for the production in the forthcoming seasons. As such, they may have a greater inclination than in the past to buy cocoa at current levels and extend cover in the process.”
Cocoa for May delivery advanced 0.3 percent to $2,177 a metric ton on ICE Futures U.S. in New York. Cocoa in London was up 0.8 percent.
White, or refined, sugar for March delivery rose 0.1 percent to $484.60 a ton on NYSE Liffe. Today is the last trading day for the contract. Raw sugar climbed 0.3 percent to 18.12 cents a pound on ICE.
Robusta coffee for March delivery dropped 0.2 percent to $2,065 a ton and arabica coffee was little changed at $1.433 a pound on ICE.
Trading volume in arabica coffee was 92 percent higher than the average of the past 100 days and sugar was 86 percent more, according to data compiled by Bloomberg.
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