Cocoa Jumps to One-Year High as Ivory Coast Leader Bans Exports

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Businessweek.com:

Jan. 24 (Bloomberg) -- Cocoa climbed in New York to the highest price in almost a year after the president-elect of Ivory Coast, the world’s largest producer, barred exports for a month.

Alassane Ouattara, the internationally recognized winner of a Nov. 28 election, suspended all cocoa and coffee shipments as of today to cut off funds to incumbent President Laurent Gbagbo, who refuses to stand down. The country’s main exporters agreed to the ban, Malick Tohe, an adviser to Ouattara’s government, said by telephone from Abidjan yesterday.

“You can’t cut off supply and not see higher prices,” said Hector Galvan, a senior trading adviser at RJO Futures in Chicago.

Cocoa for March delivery rose $128, or 4 percent, to settle at $3,312 a metric ton at 11:58 a.m. on ICE Futures U.S. in New York, after touching $3,393, the highest for a most-active contract since Jan. 26, 2010. The contract was $28 more expensive than cocoa for May delivery, a signal that buyers are concern supplies for immediate delivery will be tight.