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Cocoa Extends Rally to Nine-Month High on Supply Concerns

Aug. 30 (Bloomberg) -- Cocoa futures extended a rally to a nine-month high on mounting concern that supplies may be disrupted in Ivory Coast, the world’s top producer. Cotton and orange juice also gained, while coffee and sugar fell.

At least 14 people have been killed in six gun attacks on the army and police this month, prompting soldiers to step up security across the Ivory Coast. Futures headed for the third straight monthly gain, the longest rally since early 2011.

“Near-term tight supplies and the outbreak of violence in Ivory Coast are the main factors” supporting prices, John Caruso, a senior broker at R.J. O’Brien in Chicago, said in a telephone interview. The price “could reach $2,750 in this run,” he said.

Cocoa for December delivery rose 1 percent to settle at $2,601 a metric ton at 12:12 p.m. on ICE Futures U.S. in New York. Earlier, the commodity reached $2,620, the highest for a most-active contract since Nov. 9.

In March last year, cocoa reached a 32-year high after a disputed presidential election in November 2010 led to a civil war. President Alassane Ouattara ordered a four-month ban on cocoa exports to cut off funds to his rival who lost the vote and refused to cede power.

Cotton futures for December delivery increased 0.4 percent to 76.94 cents a pound in New York.

Orange-juice futures for November delivery advanced 1.3 percent to $1.172 a pound.

Arabica-coffee futures for December delivery fell 2 percent to $1.634 a pound.

Raw-sugar futures for October delivery decreased less than 0.1 percent to 19.75 cents a pound.

To contact the reporter on this story: Marvin G. Perez in New York at mperez71@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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