Cocoa Rises in London as Companies Evacuate Ivory Coast Workers
Cocoa rose in New York and London as some companies evacuated personnel after Ivory Coast's disputed presidential election sparked violence, threatening to disrupt exports from the world's top producer.
Grain distributor Cargill Inc. said it removed its "small number" of expatriate employees for their safety. Newcrest Mining Ltd., Australia's largest gold mining company, evacuated executives at its Bonikro mine to Ghana.
"Cocoa is reacting to the fact that the political situation is still unresolved," Kona Haque, a London-based analyst at Macquarie Bank Ltd., said by phone today. "Non-essential staff are being removed from the country. It's difficult to see how they'll maintain full operations."
Cocoa for March delivery added 10 pounds, or 0.5 percent, to 1,997 pounds ($3,087) a metric ton at 12:45 p.m. on NYSE Liffe in London, extending its gain since the Nov. 28 run-off election to 6.6 percent. Cocoa for March delivery gained $5, or 0.2 percent, to $2,963 a ton on ICE Futures U.S. in New York.
The United Nations Security Council voted 15-0 yesterday to extend the mandate of the world body's peacekeeping mission in Ivory Coast for six months in defiance of President Laurent Gbagbo's call for the withdrawal of the 9,000 troops.
The UN doesn't accept Gbagbo as the legitimate leader of the West African nation and has provided security for challenger Alassane Ouattara since the Independent Electoral Commission declared him the winner of the election.
Eoin Treacy's view Weather
and political unrest can have a marked effect on the performance of agricultural
commodities so it is natural that with increased political tension in the world's
largest cocoa producer, investors are beginning to ask what effect this might
have on prices.
London
traded Cocoa continues to test the 200-day
MA and has experienced some volatility over the last couple of weeks as demand
attempts to reassert dominance in the region of £1800. A sustained move
below £1900 would now be required to question scope for some additional
higher to lateral ranging.
Robusta
Coffee has held a progression of higher major reaction lows over the last
year, the most recent of which was near $1800. It has since rallied to retest
the peak near $2100 and while some consolidation of recent gains is a possibility.
A sustained move below $1800 would be required to question medium-term upside
potential.
London traded White Sugar has been subject
to significant bullish interest this year. It retested its peak above 800p today
and while it may be reasonable to expect some consolidation of recent gains
in this region a sustained move below the low near $650 would be required to
question medium-term upside potential.