With fighting coming to an end in Ivory coast with arrest of beleaguered president Laurent Gbango . Cocoa export ban has been lifted by new administration of Alassane Ouattara . Doubts are being set on the normalcy of supplies from ports as entire supply chains has been affected by six months of civil unrest . 40% of world total cocoa used in confectionery , bakery and other products comes from Ivory Coast .
Bloomberg reportCocoa rose for a second day on concern that exports from Ivory Coast, the world’s largest producer, may be delayed as lingering conflicts from a civil war left ports and banks in chaos. Sugar and coffee fell.
The capture of former president Laurent Gbagbo yesterday may mark the end of the Ivory Coast conflict sparked by his defeat in the Nov. 28 election. Resuming cocoa shipments may take time as Alassane Ouattara, the election winner, inherits a banking system closed by four months of global isolation.
“Normal life has to return to Ivory Coast before cocoa exports start,” said Spencer Patton, the chief investment officer at Chicago-based Steel Vine Investments LLC. “The uncertainty is not completely over.”
Cocoa for July delivery rose $24, or 0.8 percent, to $3,052 a metric ton at 11:33 a.m. on ICE Futures U.S. in New York. In London, cocoa for July delivery climbed 19 pounds, or 1 percent, to 1,929 pounds ($3,135) a ton on NYSE Liffe.
“There is an understanding the Ivory Coast is still far from normal, with infrastructure, finance, and labor still an issue,” Keith Flury, an analyst at Rabobank in London, said in an e-mail today. “I imagine the government has to set up a tax system, get the workers to the port, and after the chaos of the past month, that is likely to take some time, measured in weeks not days.”
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