Dec. 13 (Bloomberg) -- Cocoa rose for the second straight day after Olam International Ltd. forecast a global supply shortfall, countering estimates by other analysts for a surplus. Sugar and coffee advanced.
Cocoa production will be 100,000 metric tons less than consumption in the 12 months ending Sept. 30 with output from Ivory Coast, the world’s top exporter, falling to 1.35 million tons from 1.75 million tons, Gerry Manley, a managing director at Olam, a Singapore-based commodity trader, said yesterday in a telephone interview from London. Before yesterday, futures fell for 12 straight sessions, the longest slump in five decades.
“Expectations for supply have decreased, and that’s pushing cocoa,” Dennis Cajigas, a senior market strategist at Zaner Group in Chicago, said in a telephone interview.
Cocoa for March delivery advanced 2.8 percent to close at $2,243 a ton at 12:10 p.m. on ICE Futures U.S. in New York. Yesterday, the most-active contract climbed 5.5 percent, the most since October 2009. The price has dropped 26 percent this year.
“There may also be more demand coming into the market,” Cajigas said. “Purchases in Ghana are higher.”
The International Cocoa Organization and Marex Spectron Group, a London-based broker, had forecast an annual global surplus for the second straight year.
Raw-sugar futures for March delivery climbed 0.6 percent to settle at 23.44 cents a pound at 2 p.m. in New York. The price has dropped 27 percent this year.
Arabica-coffee futures for March delivery rose 0.9 percent to $2.2295 a pound, snapping a five-session slump. The price has declined 7.3 percent this year.
In London futures trading, cocoa, refined sugar and robusta coffee advanced on NYSE Liffe.
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