Cocoa futures touched their highest prices since the late 1970s on Friday amidst heightening political violence from a disputed presidential election in the Ivory Coast, which is the globe's top producer of the commodity, Bloomberg reports.
A peacekeeping mission must act more forcefully to prevent violence, Ivory Coast's United Nations ambassador said. Incumbent president Laurent Gbagbo has not stepped down and ceded victory to Alassane Ouattara, the internationally recognized victor of the late November 2010 election.
"With Ivory Coast on the brink of a civil war, cocoa nearby values have rallied," according to a Thursday report by Rabobank International. "Supply risk is high."
Just after 1:30 p.m. on Friday, cocoa futures slipped 2.38 percent, an $89 drop to $3,644 per metric ton.
Youssoufou Bamba, appointed by Ouattara as an ambassador, requested assistance from the United Nations security council. Forces loyal to Gbagbo have killed eight female demonstrators.
"The deteriorating situation in Ivory Coast is expected to result in reduced quality of beans in the short term and may lower the coming harvest potential," according to Rabobank.
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