Cocoa May Advance in London on Speculation About Limited Supplies of Beans
Cocoa, little changed in London today, may gain on speculation that supplies of the chocolate ingredient might be limited before harvesting starts.
“Buying pressure could continue in the next few weeks, as the physical availability is not there,” Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said by phone.
Cocoa supply is often tighter before harvests begin in October in Ivory Coast and Ghana, the world’s two largest growers, Laurent Pipitone, chief statistician at the International Cocoa Organization, said yesterday. Production was below demand in three of the past four years, curbing supplies of the beans, he said.
Cocoa for September delivery rose 4 pounds, or 0.2 percent, to 2,283 pounds ($3,530) a metric ton on the Liffe exchange at 10:34 a.m. local time, paring a climb of as much as 0.8 percent. London-traded cocoa has gained 26 percent in the past year, helped by forecasts for higher demand as the global economy recovers.
On ICE Futures U.S. in New York, cocoa for September delivery fell 0.1 percent to $2,971 a ton.
White, or refined, sugar for October delivery rose $7.80, or 1.4 percent, to $573.90 a ton on Liffe. Robusta coffee for September delivery fell $9, or 0.5 percent, to $1,714 a ton.
To contact the reporter on this story: M. Shankar in London at firstname.lastname@example.org.