Cocoa Rises to 1-Year High in New York on Shortage; Coffee Gains
Category: Cocoa
(Businessweek) – Cocoa rose to the highest level in almost a year in New York on speculation supplies won’t be enough to keep up with demand. Arabica coffee gained.
Global cocoa demand will exceed supply by 209,000 metric tons in the season ending Sept. 30 and 188,000 tons next season, estimates KnowledgeCharts, a unit of Commodities Risk Analysis in Bethlehem, Pennsylvania. Cocoa grind advanced 6.1 percent in Europe in the second quarter and 12 percent in North America, according to the European Cocoa Association in Brussels and National Confectioners Association in Washington.
“With cocoa grind posting strong growth across regions, 2013-14 will likely feature a second consecutive draw on global inventories and support cocoa prices,” Damien Courvalin, an analyst at Goldman Sachs Group Inc. in New York, said in a report e-mailed today.
Cocoa for December delivery rose 0.3 percent to $2,577 a ton by 5:41 a.m. on ICE Futures U.S. in New York. Prices earlier today climbed to $2,599 a ton, the highest price since Sept. 17. In London, cocoa for December delivery fell 0.1 percent to 1,687 pounds ($2,659) a ton on NYSE Liffe. Cocoa climbed 15 percent this year, the biggest gainer after West Texas Intermediate oil in the Standard & Poor’s GSCI gauge of 24 commodities.
Dry weather in Ivory Coast may mean a smaller crop in the world’s leading producer as output in second-ranking Ghana may be lower due to a cut to fertilizer subsidies, Laurent Pipitone, the head of statistics at the International Cocoa Organization, said last week.
Cocoa Liquor
Exports of cocoa liquor from the Port of San Pedro, Ivory Coast’s biggest cocoa exporting port, more than doubled to 12,862 tons in July compared with a year earlier, data from the harbor showed. Shipments of cocoa cake rose 15 percent to 993 tons. In June, liquor exports rose 45 percent to 8,852 tons and cake shipments almost tripled to 1,541 tons, the data showed. Cocoa liquor and cake are by-products of bean processing.
Raw sugar for October delivery fell 0.1 percent to 17.16 cents a pound in New York. White sugar for December delivery gained 0.2 percent to $492.10 a ton London.
Arabica coffee for December delivery gained 0.3 percent to $1.17 a pound on ICE. Robusta coffee for delivery in November dropped 0.1 percent to $1,746 a ton on NYSE Liffe.
