Cocoa Extends Rally to Eight-Week High on Demand; Coffee Rises in New York
Cocoa prices rose, extending a rally to an eight-week high, on signs of increasing demand amid tightening supplies. Coffee and orange juice also gained.
North American cocoa-bean processing rose 16 percent in the first quarter from a year earlier, the National Confectioners Association said last week. Global supplies will trail demand by 38,000 metric tons in 2009-2010, the fourth straight shortfall, Macquarie Group Ltd. said.
“There’s pretty strong consumer demand,” said Tom Schweer, a senior market strategist at LaSalle Futures Group Inc. in Chicago. The technical picture is “looking pretty good,” he said. The price closed above the 60-day moving average for the second day in a row.
Cocoa for July delivery gained $43, or 1.4 percent, to $3,087 a metric ton on ICE Futures U.S. in New York. Earlier, the price reached $3,095, the highest level for a most-active contract since Feb. 23.
The rally above $3,000 is “effectively sending bullish technical signals,” Kona Haque, an analyst at Macquarie in London, said in a report.
On London’s Liffe exchange, cocoa for May delivery rose 27 pounds, or 1.2 percent, to 2,239 pounds ($3,450) a ton.
Arabica-coffee futures for July delivery rose 0.35 cent, or 0.3 percent, to $1.3125 a pound in New York. The commodity has gained 15 percent in the past year.
Robusta coffee for May delivery dropped $14, or 1.1 percent, to $1,284 a ton in London.
Orange juice futures for July delivery rose 0.9 cent, or 0.7 percent, to $1.3895 a pound in New York. The price was up for the eighth time in nine sessions.
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