Cocoa Gains on Output Concerns in Ivory Coast; Coffee AdvancesLuzi Ann Javier
Cocoa futures advanced in New York on lingering concerns that drier-than-normal weather in Ivory Coast, the world’s largest producer, will curb output. Coffee, orange juice and sugar gained, while cotton fell.
Thunderstorms from Ivory Coast to Nigeria and Cameroon will bring 0.1 inch (0.25 centimeter) to 0.5 inch of rain daily through Sept. 25, Accuweather.com said in a report today. Ivory Coast typically gets 0.5 inch to 2 inches of rainfall a week this time of year, MDA Weather Services said Sept. 16. Cocoa prices have gained 17 percent this year on speculation that global production will fall short of demand.
“It’s weather that’s primarily affecting that market,” John Caruso, a senior commodities broker at RJO Futures in Chicago, said by telephone. “The drier conditions are expected to lead to lower production.”
Cocoa for delivery in December gained 0.1 percent to settle at $2,610 a metric ton at noon on ICE Futures U.S. in New York, after rising as much as 0.7 percent.
Arabica-coffee futures for December delivery climbed 2.1 percent to $1.1705 a pound in New York.
Dak Lak, which accounts for about 30 percent of Vietnam’s coffee output, will get more rain from Sept. 21 to Sept. 30 than the previous years’ average, Meteorology and Hydrology Dept. said last week in an e-mailed report.
“The big rains in Vietnam come at the worst time as the cherries should be about ready for harvest,” Jack Scoville, a vice president at Price Futures Group in Chicago, wrote in an e-mail today. “Demand is getting better.”
Orange-juice futures for November delivery rose 0.6 percent to $1.263 a pound. Raw-sugar futures for March delivery added 0.1 percent to 17.76 cents a pound on ICE, while cotton futures for December delivery slipped 0.3 percent to 84.27 cents a pound.