As the globe's top producer of the soft commodity, the Ivory Coast has sections enduring cold and dry weather. The cocoa harvest begins in October and the crop is best served when sunny weather mixes with rain, according to farmers' cooperative head Michel Adjei.
"Even though the lack of rain is only for the near-term, we have seen very little producer selling," derivatives vice president Luis Rangel of ICAP New Jersey told Bloomberg. "The market could gain another $50 or $100" prior to slipping in value but "lack of rain in Ivory Coast is a short- term weather phenomena, and even though the country won't have a bumper crop, it will still be good."
At 2 p.m. on Monday, cocoa futures gained 1.36 percent, a $41 gain to $3,045 per metric ton.
Laurent Gbagbo, former Ivory Coast president, was formally charged late last week with economic and financial corruption counts, according to the Guardian. Following November 2010 presidential elections, Gbagbo refused to cede power to Alassane Ouattara, who was declared the victor. A civil war ensued until U.N. and French peacekeepers apprehended Gbagbo and his wife in April. Charges for crimes of violence are reportedly pending against Gbagbo.
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