On Thursday cocoa futures rallied for the second straight session following arrivals that were lower than forecasted in top grower Ivory Coast. This caused investors to revise their predictions, lowering initial estimates.
The ICE December cocoa contract traded higher $39, or 1.2 percent, at $3,192 a ton, after climbing 4 percent in two straight sessions. This was the biggest two-day rally for the spot contract since Jan. 28. March cocoa in London climbed 20 pounds, or 1 percent, at 2,019 pounds a ton, following a contract high at 2,025 pounds, reports Reuters.
Some analysts say that even though Ebola has yet to be found in either Ivory Coast or Ghana, the closeness of the disease in neighbors Liberia and Guinea is now a concern to traders, as Ghana and the Ivory Coast are the world's largest cocoa-producing nations, according to The Wall Street Journal.
One trader said, "The correction on the Ivory Coast arrivals yesterday, that was a bit of a game changer. Effectively it cut 50,000-60,000 tons off everyone's estimate of the Ivory Coast crop," as quoted by Reuters.
Meanwhile, arabica coffee on ICE Futures U.S. and robusta on Liffe declined while futures of orange-juice concentrate for November delivery increased 0.8 percent to settle at $1.4330 a pound. Raw sugar for October delivery declined 0.7 percent at 13.79 cents a pound, reports The Wall Street Journal.
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