Cocoa Drops on Signs Ivory Coast Conflict Is Ending; Sugar Slips

Cocoa fell amid signs the conflict in Ivory Coast, the world’s largest producer, is ending, freeing supplies. Sugar also declined.

Forces loyal to Ivory Coast’s Laurent Gbagbo surrendered and the former president began to negotiate his exit from power with the United Nations. Cocoa supplies were disrupted afterAlassane Ouattara, the internationally recognized winner of a disputed November election, ordered an export ban in January. Prices have slumped 21 percent since touching a 32-year high of $3,775 a metric ton on March 4.

“The end is finally in sight,” said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. “Prices may weaken further.”

Cocoa for May delivery retreated $45, or 1.5 percent, to settle at $2,975 on ICE Futures U.S. at 12 p.m. in New York, the first fall in three sessions.

A.P. Moeller-Maersk A/S, the largest container-shipping line, would be able to send vessels to Ivory Coast immediately if the European Union lifts sanctions announced in January, said Sonny Dahl, the company’s director of West Africa services.

“Few speculators want to be long with the potential for exports to resume quickly,” Keith Flury, an analyst at Rabobank International in London, said by e-mail today.

On NYSE Liffe in London, cocoa declined 44 pounds, or 2.3 percent, to 1,911 pounds ($3,111).

Raw-sugar futures for July delivery fell 0.31 cent, or 1.2 percent, to 25.26 cents a pound in New York. In London, refined- sugar futures gained $6.10, or 0.9 percent, to $722.30 a ton.

(Source: http://www.bloomberg.com/news/2011-04-05/cocoa-slides-as-ivory-coast-conflict-may-be-ending-coffee-prices-decline.html)