Cocoa rose to an eight-week high on speculation that demand will increase and that a five-day strike in Ivory Coast, the world’s biggest grower, disrupted deliveries. Coffee gained for the first time in a week.
First-quarter cocoa-bean processing in the U.S., Canada and Mexico increased 16 percent from a year earlier, the National Confectioners Association said on April 15. Transport workers in the Ivory Coast suspended their walkout on April 16.
“Demand will help prices remain strong,” said Jimmy Tintle, a Transworld Futures analyst in Tampa, Florida. “Also, supply disruptions have helped prices move up.”
Cocoa for July delivery gained $94, or 3.2 percent, to $3,044 a metric ton on ICE Futures U.S. in New York, after touching $3,060, the highest price for a most-active contract since Feb. 23. The commodity gained 3.9 percent last week.
Cocoa may rise to $3,200 in the fourth quarter, Barclays Capital said in a report.
“The fundamental outlook for cocoa, in our view, still offers some moderate upside from current price levels,” Barclays analyst Nicholas Snowdon said in the report, noting increased grindings in the U.S. and Europe and a crop in Ivory Coast that is “underpeforming.”
Also on ICE, arabica-coffee futures for July delivery gained 0.15 cent, or 0.1 percent, to $1.309 a pound in New York. The price declined 3.4 percent in the previous five sessions.