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Tuesday, March 8, 2011

Ivory Coast crisis threatens lasting harm to cocoa

Ivory Coast crisis threatens lasting harm to cocoa : A failure to resolve quickly Ivory Coast's worsening political crisis could cause a longer-lasting impact on cocoa supplies, by deterring farmers from undertaking the husbandry needed to maximise the next harvest.

It was not too late for the settlement of a power struggle between Alassane Ouattara, the winner of Ivory Coast presidential elections in November, and Laurent Gbagbo, the incumbent premier who refuses to stand down, to puncture the rally in cocoa prices.

The total of 475,000 tonnes of cocoa sitting in Ivory Coast ports, after Mr Ouattara, the UN recognised president, forbade shipments, meant that "any sign of a potential lifting of the ban could send prices sharply lower", Hightower Report analyst Terry Roggensack said.

Ivory Coast, the world's top cocoa grower, should produce 1.3m tonnes of the bean in 2010-11, according to analysts at VM Group.

Charts suggested a pullback potentially to $3,185 a tonne, representing the loss of half gains during the recent rally, could be on the cards for New York cocoa futures, a decline of well over 10%. Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today

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