The aftermath of last week's heavy rains pose a grave threat against production in the globe's top grower of cocoa beans, Reuters reports.
Farmer of cocoa beans in the Ivory Coast said they are concerned about crops enduring higher amounts of disease and infestations of insects as well as beans running into trouble during the drying process, some farmers told the news source. Six showers dropped nearly four inches in the coastal region of Sassandra last week.
"We don't understand the climate here. It is raining like it is the main rainy season," Sassandra farmer Edmond Ezan told the news source. "Moisture could attract insects and there is the risk that some pods could turn black."
At 2 p.m. on Monday, cocoa futures gained 1.08 percent, a 0.27 cent lift to $2,516 per metric ton.
The industry also opened the cocoa harvest on October 3 following large-size reforms as traders closely view the industry.
Bloomberg reports money managers slashed bets on prices of the soft commodity gaining in value in London by more than 6 percent for the week-ended October 16, the derivatives unit of NYSE indicated.
Risk Disclosure
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.