Cocoa Rises to One-Week High on Ivorian Turmoil; Cotton Drops

April 13 (Bloomberg) -- Cocoa rose to a one-week high on concern that turmoil in Ivory Coast, the world’s largest grower, will delay the resumption of exports. Cotton declined for the fourth straight session.

Sporadic gunfire and reports of looting in the Ivorian commercial capital, Abidjan, damped hopes of a quick recovery after four months of conflict following a disputed presidential election. Cocoa production may continue to be disrupted because farmers fled plantations after the violence, said Exclusive Analysis, a London-based company that forecasts commercial risk.

“The political problems are not over,” said Drew Geraghty, a commodity broker at ICAP Futures LLC in Jersey City, New Jersey.

Cocoa for July delivery added $14, or 0.5 percent, to settle at $3,070 a metric ton at 11:59 a.m. on ICE Futures U.S. in New York. Earlier, the price reached $3,095, the highest since April 4. The price has climbed 6.6 percent in the past 12 months.

In London, cocoa futures for July delivery climbed 9 pounds, or 0.5 percent, to 1,946 pounds ($3,168) a ton on NYSE Liffe.

The Republican Forces that supported Alassane Ouattara, the newly elected leader, are patrolling the streets of Abidjan following reports of looting by their own soldiers, thieves and militias loyal to Laurent Gbagbo, the former president.

Ports will open this week, Reuters reported, citing a spokesman for Ouattara.

Cotton futures for July delivery dropped 4.93 cents, or 2.7 percent, to $1.8064 a pound in New York. Earlier, the price touched $1.7862, the lowest for a most-active contract since Feb. 25.

China, the world’s largest buyer, is reducing purchases as demand slows and some mills delay orders, according to Eastern Trading Co., a U.S. exporter.

Futures have more than doubled in the past year.

(Source: http://www.businessweek.com/news/2011-04-13/cocoa-rises-to-one-week-high-on-ivorian-turmoil-cotton-drops.html)