Cocoa futures increased to their highest prices in seven days amidst violence in the Ivory Coast, where looting and fighting continue days after the apprehension of the incumbent president who refused to cede power after losing the November election.
Bloomberg reports the West African nation, the globe's biggest grower and exporter of the soft commodity, will not recover as quickly as hoped after the four-month presidential election crisis between internationally recognized victor Alassane Ouattara and Laurent Gbagbo, who was captured earlier this week in his home's basement. Peacekeepers from the U.N. and France and forces loyal to Ouattara were involved in the effort to capture Gbagbo, who still commands respect as president.
"The political problems are not over as yet," Drew Geraghty, a commodity broker at ICAP Futures in New Jersey, told Bloomberg.
Shortly after 11 a.m. on Wednesday, cocoa futures were up 0.56 percent, a $17 rise to $3,073 per metric ton.
"We now face a reality of continued violence in a war-torn country," according to a Wednesday email from Connor Noonan, an analyst at Castlestone Management in London. "It will be some time before everything gets back to normal."
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