Cocoa Declines on West African Rain Forecast; Coffee Retreats
Cocoa fell the most in more than a week in New York on forecasts for rain in the main growing region of West Africa, which may alleviate recent dryness. Robusta coffee declined.
Rain may be seen in northern parts of the cocoa belt in Ivory Coast, the world’s top producer, MDA Weather Services, based in Gaithersburg, Maryland, said in an e-mailed report yesterday. Scattered thunderstorms from Ivory Coast to Nigeria and Cameroon through tomorrow will total 0.2 to 0.6 inch a day, AccuWeather said in a report today.
“We are in a bit of a weather market,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago said by e-mail. The weather has been unusually dry for the last two months and we’re now coming into a period where we should see more rain, he said.
Cocoa for delivery in December fell 1.7 percent, the most since Aug. 13, to $2,477 a metric ton by 9:18 a.m. on ICE Futures U.S. in New York. Cocoa for delivery in the same month slumped 1.8 percent to 1,631 pounds ($2,560) a ton on NYSE Liffe in London.
Money managers’ bullish bets on cocoa traded in London reached a 10-month high in the week ended Aug. 13, exchange data showed.
“The drop may be over done a bit,” Smith said. “Speculators are a little nervous and are willing to take profits on the first bit of scary news in terms of what we get about moisture.”
Arabica coffee for delivery in December was little changed at $1.1875 a pound on ICE after falling as much as 3.3 percent yesterday. Robusta coffee for November delivery slid 0.8 percent to $1,835 a ton on NYSE Liffe.
Raw sugar for delivery in October was little changed at 16.46 cents a pound in New York. White sugar for delivery in the same month was little changed at $488.10 a ton in London.
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