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Cocoa Futures Gain in N.Y. on Speculation Disease May Reduce SuppliesJune 19th, 2008Cocoa futures rose a second day on speculation crops in Ivory Coast, the world's biggest grower, are threatened by disease. Cocoa-bean quality has been ``very problematic,'' Jan Vingerhoets, executive director of the International Cocoa Organization, said last week. Most-active futures jumped to the highest price in at least 22 years yesterday after independent analyst Hans Kilian projected a supply shortfall that's wider than other forecasts. ``We have news out of Ivory Coast that there's fungus on the beans, and we're concerned about the crop,'' said Ralph Preston, an analyst at Heritage West Futures Inc. in San Diego. A rise in the U.K. pound, used to trade cocoa in West Africa and London, also helped the price today, he said. Cocoa futures for September delivery rose $8, or 0.3 percent, to $3,106 a metric ton on ICE Futures U.S., the former New York Board of Trade. It was the highest close since at least 1986. Speculation that Ivory Coast's crop is being damaged by insects and disease drove most-active futures to three straight weekly gains through June 13. Most-active futures reached $3,122 yesterday on supply concerns before paring gains. Cocoa-bean quality has declined because buyers mix cocoa that has been properly fermented and dried with inferior moldy beans, Vingerhoets said. Capsid bugs and caterpillars have also damaged trees as farmers reduced pesticide use because of rising costs, Reuters reported last month. The International Cocoa Organization has projected a gap of 41,000 metric tons between output and demand for the year ending in September. - Ron Day in New York at Bloomberg. Click here for your Free Cocoa Futures Trading eGuide | |