Cocoa futures rose to a two-week high on speculation that rain may reduce crops in West Africa. Cotton and orange juice fell.
Ivory Coast, the world’s top cocoa producer, and Ghana, the second-biggest, will get rain at least through June 13, the U.S. National Oceanic and Atmospheric Administration said. Prices gained for the fifth time in six sessions.
“Showers have been reported in most parts of West Africa in recent days, and some think the current rains will delay harvest and could hurt quality as drying the beans becomes harder,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a report.
Cocoa for September delivery climbed 0.9 percent to $2,205 a metric ton at 10:44 a.m. on ICE Futures in New York. Earlier, the price reached $2,230, the highest for a most-active contract since May 22.
In London, cocoa futures gained on NYSE Liffe in London.
Cotton futures for December delivery slid 1.2 percent to 69.03 cents a pound in New York.
In the year starting Aug. 1, inventories in the U.S., the world’s biggest exporter, may rise to 5.15 million bales, compared with 4.9 million estimated last month by the government, according to a Bloomberg News survey.
The U.S. Department of Agriculture will update its forecast tomorrow. A bale weighs 480 pounds, or 218 kilograms.
“There’s going to be a big surplus next year,” Andy Ryan, a senior risk manager at INTL FCStone in Nashville, Tennessee, said in a telephone interview.
Orange-juice futures for July delivery fell 0.2 percent to $1.1345 a pound on ICE.
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