Cocoa Rises to One-Year High on Supply Concerns; Sugar Declines

Cocoa futures advanced to a one-year high on mounting concern that supply may decline after dry weather hurt yields in Ivory Coast, the world’s top grower. Sugar, coffee, cotton and orange juice fell.

Rains in parts of Ivory Coast may total 0.1 inch (0.25 centimeter) to 0.5 inch in the 10 days started Sept. 12, below the normal level of 1.65 inches a week at this time of year, Bethesda, Maryland-based Commodity Weather Group said. About 18,670 metric tons of cocoa were delivered against expired September futures on the NYSE Liffe exchange in London, the most since the May contract expired. Prices have rallied 18 percent this year on global supply concerns.

“The continued dryness, continued fears that yields will drop, leading to the deficit this year, is really building up the price of cocoa,” Hector Galvan, a senior commodities broker at RJO Futures in Chicago, said by telephone today. “The news that we had such a large delivery of cocoa in the Liffe market was also very bullish.”

Cocoa for delivery in December climbed 1.3 percent to settle at $2,636 a ton at 12:10 p.m. on ICE Futures U.S. in New York, after rallying to $2,642, the highest since Sept. 17.

Sucres et Denrees SA bought 71 percent of all the supplies delivered against the expired September futures on the NYSE Liffe.

Raw-sugar futures for delivery in March slid 0.8 percent to 17.53 cents a pound in New York. Arabica-coffee futures for delivery in December fell 0.6 percent to $1.1925 a pound on ICE, while cotton futures for December delivery slipped 0.5 percent to 84 cents a pound.

Orange-juice futures for November delivery slumped 3.2 percent to $1.357 a pound in New York, the biggest drop since Sept. 3.

U.S. retail sales of orange juice fell to 39.4 million gallons in the four weeks ended Aug. 31, from 41.27 million a year earlier, the Florida Department of Citrus said today, citing data from Nielsen Co. The nation is the largest consumer of the beverage, according to the Department of Agriculture.

Before it's here, it's on the Bloomberg Terminal.