Cocoa rises on harvest concern; sugar, cotton, coffee advance

Aug. 17 (Bloomberg) -- Cocoa rose the most in three weeks in New York on speculation that dry weather will cut output in Ghana, the world’s top grower after Ivory Coast. Sugar, cotton, coffee and orange juice also climbed.

Ghana’s western region, the biggest cocoa-producing area, got 4.5 millimeters (0.2 inch) of rain from Aug. 1 to Aug. 10, data from the Ghana Meteorological Agency showed. That compares with 35.4 millimeters a year earlier. West Africa supplies about two-thirds of the world’s crop.

“Current weather conditions are not supportive for the main crop harvests in West Africa,” Keith Flury, an analyst at Rabobank International in London, said in a report e-mailed yesterday. “We expect further upside.”

Cocoa futures for December delivery rose 2.3 percent to $2,455 a metric ton at 10:38 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest gain since July 26.

Raw-sugar futures for October delivery added 1.8 percent to 20.52 cents a pound in New York.

Cotton futures for December delivery advanced 1.5 percent to 73.69 cents a pound, while arabica-coffee futures for December delivery increased 0.6 percent to $1.6275 a pound on ICE.

Orange-juice futures for November delivery climbed 0.2 percent to $1.0825 a pound in New York.

Bloomberg News

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