Soft Commodities price watch: Cocoa hits 23-month high
iNVEZZ.com Tuesday, October 8th: The cocoa price today reached a 23-month high in New York with supplies set to trail demand this season and West African rains threatening to delay bean deliveries to ports.
According to estimates by Macquarie Group, cocoa production will fall 173,000 metric tonnes short of consumption in the 2013-14 season which began earlier this month. An 113,000-tonne shortage is forecast for the following year, said Kona Haque, an analyst at the group. In addition, growing areas in top producers Ivory Coast and Ghana may receive as much as 150 percent of normal rainfall in October’s second half, which could slow harvesting and push prices further up, World Weather has projected.
Cocoa for delivery in December on ICE Futures US in New York was 0.67 percent up at $2,717 a tonne at 14:55 BST, after touching $2,729 a tonne earlier, the highest since November 8, 2011. In London, the contract for the same month of delivery on NYSE Liffe today reached a session high of £1,765 a tonne, the highest price level since December 15, 2011.
As of 15:00 BST, the Arabica coffee price for December delivery on ICE had fallen 0.48 percent to trade at $1.1395 a pound. Robusta coffee for delivery in November on NYSE Liffe dropped 0.5 percent to $1,701 a tonne.
As of the same time, raw sugar for delivery in March had declined by 0.27 percent to trade $0.1860 a pound in New York. White sugar price for delivery in December added 0.1 percent to $498.20 a tonne in London.
**Soybeans advance for fifth day**
The soybean price today advanced for a fifth day and is set for the longest rally in more than four months due to forecasts that rain over the past week in the Midwest, the biggest growing region in the United States, may delay the harvest this week. In addition, industry group Informa Economics last week cut its forecast for US soybean production to 3.176 billion bushels, 1.5 percent lower than the previous estimate.
!m[Soybeans set for longest rally in four months ](/uploads/story/5954/thumbs/pic1_inline.jpg)
Soybeans for delivery in November on the Chicago Board of Trade (CBOT) today climbed as much as 0.6 percent to $13.0375 a bushel, and traded at $12.9975 at 15:03 BST. If maintained throughout the trading session, today’s fifth day of advance will mark the best run since May 23.
As of 15:10 BST, the wheat price for delivery in December had shed 0.11 percent to be at $6.9350 a bushel, after rising as high as $6.9725 a bushel earlier in the session. As of the same time, the corn price for delivery in December was at $4.4550 a bushel, 0.83 percent down on the day.
The US Department of Agriculture’s (USDA) update of global supply and demand forecasts scheduled for release on October 11 would be delayed by the partial government shutdown that began October 1, a USDA spokeswoman said yesterday.
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