Cocoa futures climbed in value on Monday afternoon as shipments of the beans have resumed in the world's top exporter of the soft commodity, Bloomberg reports.
As compared to the same period last year, deliveries of cocoa beans to ports in the Ivory Coast have nearly doubled, which marks a notable achievement for the nation coming off a divisive political dispute.
"Cocoa is falling due to a general rise in risk aversion," according to a Monday email from analyst Carsten Fritsch of Commerzbank in Frankfurt. "The supply surplus makes cocoa prices vulnerable to setbacks if market sentiment deteriorates."
At 12:57 p.m. on Monday, cocoa futures climbed 1.92 percent, a $56 increase to $2,973 per metric ton.
Following the November 2010 presidential election, 10-year-incumbent Laurent Gbagbo refused to cede power to Alassane Ouattara, who was declared the victor. A months-long standoff followed, which found cocoa and the commerce it generates used as a pawn. Peacekeepers from the United Nations and France apprehended Gbagbo in early April, paving the way for Ouattara to be inaugurated in May.
The Business Recorder reports the dollar gaining strength also impacts the price of cocoa futures.
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