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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.