A cautious optimism is beginning to develop in the Ivory Coast after Monday's apprehension of the incumbent president who refused to leave office after losing the national election in November, Bloomberg reports.
Eleven years of conflict in the nation that produces the globe's largest amount of cocoa might begin giving way to the new administration of Alassane Ouattara, a former International Monetary Fund director who will now need to rebuild his country and its vital cocoa industry. The soft commodity came to be a pawn in the power struggle between Ouattara and Laurent Gbagbo, whose capture marks the end of his reign of power.
"Ivory Coast's economic infrastructure has not been severely damaged," Samir Gadio, an emerging-market strategist at Standard Bank Group, told the news service. "The base to heal the country is there. The international community will be quite sympathetic to the new regime."
Shortly prior to 10:30 a.m. on Tuesday, cocoa futures were down 0.03 percent, a $1 dip to $3,027 per metric ton.
"Cocoa prices should come down by another $100, but not more, as there is a logistics nightmare waiting for the supply chain on the ground – banking, storage, trucking, workers, cash," Luis Rangel, a vice president at ICAP Futures, told the news service.