Cocoa Falls on Speculation of West African Sales; Coffee Drops

Cocoa fell for a second day in New York on speculation producing countries in West Africa, the biggest growing region, will boost sales after prices climbed in the four trading sessions through March 12. Coffee fell.

Ivory Coast unexpectedly returned to the market in the past two weeks to sell beans from its main crop, according to three people with direct knowledge of the sales. Both Ivory Coast and Ghana sell part of their crop before the harvest starts, so-called forward sales. Ghana, the second-biggest producer, may also be selling, according to broker Aurel BCG.

“We knew that we should see some origins selling on the rally,” Jerome Jourquin, head of agricultural commodity derivatives at Aurel BGC in Paris, said by e-mail today. “Some funds may also be taking some profit.”

Cocoa for May delivery fell 1.3 percent to $2,119 a metric ton by 9:39 a.m. on ICE Futures U.S. in New York. It slid 0.5 percent yesterday. Cocoa for May delivery dropped 1 percent to 1,446 pounds ($2,164) a ton on NYSE Liffe in London.

Cocoa gained 5.7 percent in New York in the four sessions through March 12 on speculation of limited supplies from West Africa. Cocoa purchases from farms in Ghana were 17 percent lower at 594,000 tons from the season’s start on Oct. 1 through Feb. 28, according to KnowledgeCharts, a unit of researcher Commodities Risk Analysis in Bethlehem, Pennsylvania.

Bean deliveries to ports in top grower Ivory Coast were 649,249 tons from Oct. 1 through Dec. 31, according to the government. That’s a 7.5 percent decline from a year earlier, official data showed.

Arabica coffee for delivery in May declined 0.1 percent to $1.408 a pound in New York. Robusta coffee for delivery in May was down 1.2 percent at $2,177 a ton in London.

Raw sugar for May delivery was down 0.8 percent to 18.65 cents a pound on ICE. White sugar for May delivery was little changed at $533.70 a ton on NYSE Liffe.

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