|
Cocoa melts to new lows
|
 |
September 16, 1998: 5:58 p.m. ET
Ghana selling, Russia rumors send cocoa to 18-month lows; Natural gas rises again
|
NEW YORK (CNNfn) - Cocoa futures melted to their lowest levels in 18 months on Wednesday, amid a run of selling pressure led by Ghanaian producers and speculation of chocolate plant closings in Russia.
The Coffee, Sugar and Cocoa Exchange cocoa futures contract for December delivery settled at $1,533 a metric ton, down $33.
That was up only slightly from the intraday trading low of $1,531, the lowest level since March 1997. Several other contracts that trade in lower volumes than the December contract hit all-time lows Wednesday.
Analysts said selling pressure over the past two weeks has come from suppliers in Ghana, one of the top cocoa-producing nations.
Meanwhile, world demand has dried up considerably - as it has for many commodities - due to economic weakness in Asia and key emerging markets such as Russia.
Cocoa prices were up at the start of trading, on the heels of gains in London's LIFFE market, but rumors began that Russia might close two chocolate plants.
"While there is nothing new and exciting in terms of negative news, the collapse in Asian markets has had an adverse reaction in cocoa and chocolate," Art Stevenson, a soft-commodities analyst with Prudential Securities, said. "And it has also been undermined by hedge activity. Ghana has been a big seller over the last seller in the past week or two."
Natural gas gains again
Natural-gas futures surged Wednesday on continued concern about storms in the Gulf of Mexico tying up production.
The Nymex Henry Hub natural-gas futures contract for delivery in October climbed 11.8 cents to settle at $2.241 per million British thermal unit, a new two-month high.
The gains came a day after natural gas broke through a key resistance level, in part because a majority of traders were buying to cover short positions. 
|
|
|
|
|
 |
|
