Cocoa, cotton futures join broad commodity rally

Cocoa and cotton futures rallied along with the rest of the commodities sector Thursday, reaching multi-decade highs.

March cotton added 7 cents to close at $2.04 a pound on ICE Futures U.S., the highest level on record since the early 1990s, according to the exchange, which said the contract hit the exchange’s limit for an intraday gain. March cocoa rose $19 to close at $3,482 per metric ton, the highest level since 1984, according to FactSet.

“Commodities in general spiked higher … as large-scale investment money returned to the markets,” said Darin Newsom, senior analyst at Telvent DTN. “Most markets don’t need a strong fundamental reason to rally, though the underlying sentiment is that cocoa, like many other commodities, is facing an extended period of increased demand and tighter supplies.”

(Source: http://blogs.marketwatch.com/marketjunkie/2011/02/17/cocoa-cotton-futures-join-broad-commodity-rally/)