By Chris Prentice - Jan
28, 2011 3:29 PM ET
Cocoa Halts Longest Rally in 3 Years;
Cotton, Orange Juice Drop
declined, halting the longest rally in more than three
years, on bets that global supplies will be ample even
amid political unrest in Ivory Coast, the world’s largest
producer. Cotton and orange juice dropped.
second-biggest cocoa producer, purchased more beans
from farmers this season as better weather and increased
use of pesticide and fertilizer boosted the crop. Prices
have jumped 17 percent since a Nov. 28 election in Ivory
Coast, when President Laurent Gbagbo refused to yield
power to President- elect Alassane Ouattara.
don’t favor this being anything other than a short-term
problem,” said Shawn Hackett, the president of Hackett
Financial Advisors in Boynton Beach, Florida. “Enough
people are starting to realize that things are going
to calm down.”
March delivery fell $81, or 2.4 percent, to settle at
$3,277 a metric ton at 12:01 p.m. on ICE Futures U.S.
in New York, snapping nine straight gains, the longest
rally since September 2007. The price climbed for the
third week in a row, up 2.9 percent.
cocoa futures for March delivery fell 36 pounds, or
1.6 percent, to 2,164 pounds ($3,431) a ton on NYSE
Coast’s elected president banned bean exports from Jan.
23 to Feb. 23. Jeannot Ahoussou, Ouattara’s justice
minister, said the country’s shippers risk sanctions
if they pay export taxes to the industry body controlled
by Gbagbo, after the ban was announced Jan. 21.
percent of Ivory Coast’s exporters are respecting the
call for the suspension of shipments for a month, according
to the administration.
643,000 tons of beans from farmers this season. The
amount for the 15 weeks to Jan. 13 was higher than the
last crop period, according to the Ghana Cocoa Board,
which declined to provide comparative figures.
for March delivery fell 4.64 cents, or 2.7 percent,
to $1.6475 a pound on ICE, amid protests in Egypt. The
price touched a record $1.7283 yesterday.
worldwide plunged as Egypt’s president Hosni Mubarak
imposed a nationwide curfew today after protests intensified.
in Egypt is spooking investors,” said Keith Brown, the
president of Keith Brown & Co., a brokerage in Moultrie,
Georgia. “There is some end-of-the-week profit taking.”
futures for March delivery dropped 1.15 cents, or 0.7
percent, to $1.659 a pound in New York. Prices have
declined for six straight sessions, the longest slump