Cocoa Ends Higher but Still Stuck in a Tight Trading Range

Cocoa prices ended higher

Cocoa prices ended higher Wednesday as investors await word from the International Cocoa Organization later this month about the state of the upcoming smaller, midcrop in West Africa, the largest growing region.
Cocoa for May delivery rose 1.6% to $2,880 a ton on the ICE Futures U.S. exchange. Prices dropped sharply at the start of the year and have been stuck in a tight lower trading range for a month on the back of global macroeconomic concerns that have traders expecting less demand for the main ingredient in chocolate.

Mr. Roggensack said that while seasonal harsh winds hit cocoa growing regions recently, it is unclear if that harmed cocoa production for the coming smaller midcrop and so far, beans from the main crop have been arriving in Ivory Coast, the world's largest growing region, nearly on pace with last year.

INTL FCStone said in a note that physical merchants have had to pay a premium of as much as $72 for Ivory Coast cocoa due to the damage from the winds but that futures prices haven't reacted as traders are still uncertain about what, if any, lasting effects there have been on the crop.

In other markets, arabica coffee for May ended down 0.3% at $1.1660 a pound, raw sugar futures fell 0.5% to close at 13.16 cents a pound, May cotton lost 0.3% at 59.55 cents a pound and frozen concentrated orange juice futures for March fell 3.3% to end at $1.3155 a pound.