Tuesday, December 8, 2009

Government Comittee Recommends Ivory Coast Cocoa be Government Controlled

Who saw this coming, what with cocoa hitting a 20-year high on Friday?
Two from Bloomberg:
A government committee set up to reorganize the cocoa business in Ivory Coast, the world’s biggest producer of the chocolate ingredient, recommended that private companies have a reduced role in the industry, said an official with knowledge of the proposals.....MORE

Cocoa Erases Gain to Two-Decade High in London as Dollar Climbs
Cocoa erased a gain in London to the highest price in at least two decades as a stronger dollar reduced commodities’ appeal as an alternative investment.

Cocoa for December delivery lost 6 pounds, or 0.3 percent, to close at 2,183 pounds ($3,604) a metric ton on the Liffe exchange. The contract earlier climbed as high as 2,204 pounds, the highest intraday level since at least 1989. The March contract, the most active, slipped 0.1 percent to 2,227 pounds.

“It is a correction after the market reached record highs, and the London market is following New York,” said Deminda Bandara, a cocoa trader with Itochu Europe Plc in London. “But the uptrend remains intact, as it seems to be a bullish market.">>>MORE