LONDON: Cocoa futures on the ICE exchange hit fresh one-month highs on Wednesday amid market chatter that the contracts’ inclusion in a major commodities index next year will boost prices.
COCOA: New York cocoa rose 5.6 percent to USD6,211 a metric ton at 1345 GMT, having hit a one-month high of USD6,250.
Dealers cited talk that New York cocoa’s inclusion in the Bloomberg Commodity Index (BCOM) next year will initially result in about 30,000-35,000 lots of buying.
They explained that the funds who will trade cocoa within the BCOM are believed to be largely long only funds. A long position is essentially a bet on price gains.
London cocoa ?rose 4.9 percent to 4,459 pounds per metric ton, having hit a one-month high of 4,477.
COFFEE: Robusta coffee edged up 0.4 percent at USD4,124 a ton, after setting a 2-1/2-month low of USD4,046.
“Vietnam’s coffee harvest is showing remarkable resilience.
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