Cocoa Surges to 32-Year High on Ivory Coast Political Unrest

Cocoa futures jumped to a 32-year high on mounting political unrest in Ivory Coast, the world’s largest producer.
The only way to resolve the Ivorian presidential-election dispute is to organize protests similar to those that ousted Egypt’s Hosni Mubarak, according to the prime minister appointed by Alassane Ouattara, recognized internationally as the winner of Ivory Coast’s Nov. 28 vote. Units of at least six international banks closed this week amid security concerns.
“Things are starting to rumble up again,” said Drew Geraghty, a commodity broker at ICAP Futures LLC in Jersey City, New Jersey. “People are afraid of the potential for increased unrest.”
Cocoa for May delivery climbed $61, or 1.8 percent, to settle at $3,499 a metric ton at 12:06 p.m. on ICE Futures U.S. in New York. Earlier, the price reached $3,511, the highest for a most-active contract since February 1979. The commodity has gained 25 percent since late November.
The price may rise to $4,000, said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. He didn’t give a timeframe. The record high was $5,379 on July 18, 1977. Read More