Cocoa may advance in London on speculation extended unrest in the Ivory Coast, the world’s largest cocoa producer, heightens the risk of a bean shortage next season. Coffee and sugar declined.
Thousands of supporters rallied in Abidjan over the weekend in support of incumbent President Laurent Gbagbo, who has ordered cocoa exporters to ship beans or face sanctions. Rival Alassane Ouattara, the internationally recognized winner of Nov. 28 presidential elections, has imposed an export ban. Cocoa supplies will exceed demand this season, according to the International Cocoa Organization.
“The market is concerned that we may tip into a deficit if a potential war affects the next main crop,” said Keith Flury, an analyst at Rabobank International in London. The Ivory Coast’s main crop usually starts in October.
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