Cocoa Falls a 3rd Day as Rain May Help Crop; Sugar Also Declines
Cocoa fell for a third day in London on speculation rain is helping boost crop prospects in Ivory Coast, the world’s largest grower. Sugar also declined.
The Daloa region, which accounts for about a third of Ivory Coast production, had three times more rain from March 21-31 than a year earlier, according to the National Meteorological Service. The Standard & Poor’s GSCI gauge of 24 commodities is down 3.3 percent this week, heading for the biggest weekly decline since October.
“There was some concern dry weather would have a negative effect in Ivory Coast so the rain may be easing those concerns,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, by phone today. “Cocoa is getting caught up with selling of many commodities.”
Cocoa for July delivery dropped 0.9 percent to 1,439 pounds ($2,191) a metric ton by 10:25 a.m. on NYSE Liffe in London. Prices in New York fell 0.8 percent to $2,125 a ton, the fourth consecutive decline.
European cocoa usage in the first quarter probably fell 2 percent to 7 percent from a year earlier, Marex Spectron Group Ltd. said in a report today, citing “estimates.” The European Cocoa Association reports April 17 on the cocoa grindings. The U.S. report due April 18 may show anywhere from a 5 percent drop to 5 percent gain year-over-year, Marex said.
White, or refined, sugar retreated 0.2 percent to $489 a ton and raw sugar fell 0.3 percent to 17.62 cents a pound.
Robusta coffee slipped 0.5 percent to $2,046 a ton and arabica beans were down 0.5 percent to $1.3885 a pound.
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