Cocoa Drops Most in 11 Weeks on West Africa OutlookLuzi Ann Javier
Cocoa futures tumbled the most in 11 weeks as supply concerns ease on signs of an accelerating harvest in West Africa, the world’s top growing region. Coffee, sugar and cotton fell, while orange juice rose.
West Africa will have mostly dry conditions in the next two weeks, aiding fieldwork, Drew Lerner, the president of World Weather Inc. in Overland Park, Kansas, said today in an interview. In the week ended Nov. 5, bets by money managers on a rally rose 10 percent a a record 83,674 futures and options contracts, government data showed.
“We’ve got the harvest of this season’s crop in Ivory Coast and Ghana running well ahead of schedule, and that’s contributing to the downside” in prices, John Caruso, a senior commodity broker at RJO Futures in Chicago, said in a telephone interview. “A lot of people are a little bit unsure of higher prices, and that’s leading to profit-taking.”
Cocoa for March delivery slumped 2.6 percent to settle at $2,601 a metric ton at 12:18 p.m. on ICE Futures U.S. in New York, the biggest drop for a most-active contract since Aug. 21. This year, the price has climbed 16 percent, the most among 24 raw materials in the Standard & Poor’s GSCI Spot Index.
Arabica-coffee futures for December delivery fell 0.8 percent to $1.0325 a pound. Trading was more than double the 100-day average for this time, according to data compiled by Bloomberg. This year, the price has plunged 28 percent, heading for the third straight annual slump.
Raw-sugar futures for March delivery declined 0.6 percent to 17.97 cents a pound.
Cotton futures for March delivery dropped 0.6 percent to 78.2 cents a pound.
Orange-juice futures for January delivery climbed 1.8 percent to $1.3385 a pound. Earlier, the price reached $1.343, the highest since Sept. 17. The commodity advanced for the fifth straight session, the longest rally in four months.