Futures Market News
Cocoa futures projected to drop due to rain
Mar 15, 2012 10:48 AM
The region provides the world with roughly 69 percent of its cocoa beans as Ivory Coast and Ghana are the world's top two cocoa-producing nations. The nourishment for the plantations is projected to halt the soft commodity's biggest rally in a year. Prior to Thursday, cocoa futures had gained 6.8 percent on ICE Futures U.S.
"Recent rains in West Africa have been plentiful, particularly in Ghana, and this is positive for the development of the mid-crop and the new crop," Eric Sivry, head of Marex Spectron's agriculture options brokerage, told Bloomberg. "Many analysts have been caught by surprise."
At 10:18 a.m. on Thursday, cocoa futures fell 4.97 percent, a $115 loss to $2,199 per metric ton.
Cameroon, the globe's fifth-largest supplier of cocoa, is projected to produce 20 percent less cocoa this year due to infestations of insects and black pod fungal disease, according to the International Cocoa Association.
Reuters reports the soft commodity was seeing light business early in the trading session on Thursday.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Tax-Advantaged Forex Investing
Did you know that you can invest individual retirement funds (IRA’s) into forex?
Have you been following forex and have the time to devote to trading, but lack the free funds to invest? Tax advantaged forex investing may be for you.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.