Cocoa extends gains in London and New York on speculation the spread of Ebola is putting crops at risk in West Africa.
United Nations Secretary-General Ban Ki-Moon announced the creation of an emergency UN mission after Ebola spread to five West African nations. Two of them, Liberia and Guinea, are right next to Ivory Coast, the world’s largest cocoa grower. Cocoa futures in London jumped 3.8 per cent this week.
The possibility of Ebola spreading to Ivory Coast is “a risk, it’s just an unquantifiable risk,” said Jonathan Parkman, co-head of agriculture at Marex Spectron in London. “The fact that the world is making a bigger effort to control it will be extremely helpful.”
Cocoa futures in London rose 0.2 percent to 2,070 pounds ($3,394) a metric ton by 10:28 a.m. on Liffe, and advanced 0.2 percent to $3,199 a ton on ICE in New York.
Bloomberg news edited by ESM
