Cocoa Extends Gains on Ivory Coast Heat Concerns; Coffee Rises

(Bloomberg) -- Cocoa prices rose for a fourth day as hot and dry weather in some parts of Ivory Coast led to worries over tight supplies. 

Futures in New York rose to the highest intraday level in almost two weeks as growers are starting to worry about the impact of the seasonal dusty Harmattan winds on crops. The lack of showers in central Ivory Coast is also raising concerns. Prices are rising this week after declining in the previous two.   

“Continued hot and dry weather over West African growing areas benefited cocoa prices as that should have a negative impact on the region's upcoming mid-crop output,” Hightower said in a report. A weaker dollar “particularly benefited cocoa as that helps to strength its near-term demand outlook.”

The Bloomberg Dollar Spot Index declined 0.24% in a third day of losses. 

Cocoa for March delivery settled $4 higher at $2,617 per metric ton, after gaining as much as 1.1%. In other soft commodities, raw sugar for March delivery tumbled 3% to the lowest level since Jan. 10.

Arabica coffee settled at the highest in a week. Retail coffee prices are on the rise, with some of the world's biggest roasters and sellers of coffee passing on the higher costs of beans. 

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