Cocoa tumbled the most in five weeks in New York on bets that a large crop in West Africa will add to supplies boosted by the resumption of exports from Ivory Coast, the world’s largest producer. Sugar and coffee also fell.
William Venables, the head of cocoa trading at Armajaro Trading Ltd., said yesterday that the smaller of two seasonal West African crops will be “pretty good.” Ivorian shipments may be returning to normal after exports ceased amid a civil war following a disputed presidential election. A cargo of 8,000 metric tons arrived in Belgium this week.
“You have rumors of good supply across the board, which is weighing on the market,” said Drew Geraghty, a broker at ICAP Futures LLC in Jersey City, New Jersey. “The fundamentals are causing weakness.”
Cocoa for July delivery slid $156, or 4.9 percent, to settle at $3,055 a ton at 11:57 a.m. on ICE Futures U.S. in New York, the biggest drop since March 29.
In London, cocoa futures for July delivery fell 60 pounds, or 3.1 percent, to 1,885 pounds ($3,094) a ton on NYSE Liffe.
Raw-sugar futures for July delivery dropped 0.49 cent, or 2.3 percent, to 20.86 cents a pound in New York. Refined-sugar futures for August delivery fell $10.40, or 1.8 percent, to $582.30 a ton in London.
Arabica-coffee futures for July delivery slid 6.25 cents, or 2.1 percent, to $2.8825 a pound in New York. Robusta-coffee futures for July delivery gained $5, or 0.2 percent, to $2,582 a ton inLondon.
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