Cocoa prices soar to eight-week high<\/p>\n
NEW YORK (Reuter): Cocoa prices soared to their highest level
\nin eight weeks on Tuesday amid growing concern that the El Nino
\nweather pattern could put a severe dent in world production.<\/p>\n
\"All the El Nino stories are coming together. Because of
\npotential problems in Indonesia, Malaysia, (Papua) New Guinea,
\nEcuador and Brazil you could see 200,000 to 300,000 tons in
\nlosses,\" said Smith Barney analyst Walt Spilka.<\/p>\n
El Nino is a warming of the eastern part of the central
\nPacific Ocean which in the past has disrupted weather patterns
\naround the globe, causing droughts and other unusual events.<\/p>\n
\"El Nino lasts 18 to 24 months,\" Spilka added. \"It will peak
\nat Christmas and go through the mid-crop into next year's crop,
\nso there's all sorts of bullish potential.\"<\/p>\n
Some traders also linked the rise in prices to talk that U.S.-
\nbased crop forecaster Hans Kilian had issued a long-awaited
\nreport that was not as bearish as some market participants had
\nanticipated.<\/p>\n
While Kilian was rumored to have said the Ivory Coast crop was
\nprogressing well, he also reported that an estimated 3 percent
\ngrowth in world consumption and crop shortfalls in the Far East
\nand parts of South America could lead to a world cocoa deficit of
\n200,000 tons in 1997\/98, traders said.<\/p>\n
They said Kilian pegged the Ivorian 1997\/98 main crop at
\n950,000 tons and the total 1997\/98 (main and mid-crop) at 1.10
\nmillion tons.<\/p>\n
\"People were expecting something bearish,\" said one trader.
\n\"The Ivorian crop estimate was neutral, but Kilian also said
\nproduction problems elsewhere would lead to a deficit of 200,000
\ntons.\"<\/p>\n
No one was available at Kilian's New Orleans office to comment
\non the report.<\/p>\n
At New York's Coffee, Sugar and Cocoa Exchange, cocoa for
\nDecember delivery closed $38 per ton higher at $1,653, its
\nhighest close since July 2.<\/p>\n
Corn prices on the Chicago Board of Trade closed sharply
\nlower, weakened by a reported improvement in the condition of
\nthis year's U.S. crop and talk of Chinese sales.<\/p>\n
\"A number of things hit us today and you have to say the crop
\nconditions were a surprise, and when you continue to see China
\nselling into the market that's a negative,\" said Don Roose, of
\nU.S. Commodities, Des Moines, Iowa.<\/p>\n
The U.S. Department of Agriculture said late Monday that as of
\nSunday 63 percent of the U.S. corn crop was in good to excellent
\ncondition, above the 60 percent in that category the previous
\nweek.<\/p>\n
Talk circulated in the market that China was still selling
\ncorn despite dry weather that may reduce its output, sources
\nsaid.<\/p>\n
CBOT corn for December delivery closed 8-1\/2 cents a bushel
\nlower at $2.67-3\/4.<\/p>\n
At the New York Mercantile Exchange, gasoline extended losses
\nfor a second consecutive session amid falling cash prices in the
\nNew York Harbor.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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