Cocoa Prices Rise to 10-Week High on Demand Data; Coffee Is Little Changed
Cocoa futures rose to a 10-week high after a report showed North American consumption climbed. Coffee prices were little changed.
The cocoa grind, an indication of demand, rose 12 percent in the second quarter to 117,657 metric tons from a year earlier, the Washington-based National Confectioners Association said yesterday. The figure jumped 16 percent in the first quarter. Cocoa prices have gained 18 percent in the past 12 months.
“The strong grinding numbers are providing an underlying support to the market,” said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. “There is also a lot of technical buying.”
Cocoa for September delivery climbed $21, or 0.7 percent, to $3,165 a ton on ICE Futures U.S. in New York. Earlier, the price reached $3,210, the highest level for a most-active contract since May 6. This week, the commodity gained 5.6 percent, the most since late April.
Futures may reach $3,263 next week should prices settle above $3,164, Cruel said before the close.
Cocoa futures for September delivery rose 26 pounds, or 1.1 percent, to 2,445 pounds ($3,745) a ton on Liffe in London.
Arabica-coffee futures for September delivery declined 0.05 cent to $1.6705 a pound in New York. Earlier, the price reached $1.698, the highest level since June 28. The commodity gained 2 percent this week and is up 23 percent this year.
Robusta-coffee futures for September delivery climbed $11, or 0.6 percent, to $1,764 a ton in London, up for the fourth straight day.