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Cocoa Rises; Soybeans & Wheat Declines on Good Weather

October 1, 2010 at 23:27 by Vladimir Vyun

Cocoa reached the highest level in six weeks today on concern about possible disruptions of supplies from Ecuador because of fighting in the country. President Rafael Correa, who were held captive in hospital by police as part of a wage dispute or, according to the president’s opinion, as an organized coup attempt, were freed by Ecuadorean military forces. Ecuador accounts for 4 percent of global cocoa production. December delivery for cocoa rose $34 (1.2 percent) to $2,848 per metric ton as of 12:47 on ICE.

Soybeans dropped today to the lowest level in more than a year on speculation that favorable weather would boost crops in the US, Argentina and Brazil. Dry weather in the US will allow to accelerate planting, while rains in Brazil and Argentina will improve soil moisture for the crops. November futures for soybean delivery subtracted $0.4975 (4.5 percent) to $10.57 per bushel as of 13:15 on CBoT.

Good weather in also drove lower prices for wheat. Parts of Eastern Europe, including Ukraine and Russia, may receive about 0.8 centimeter (0.3 inch) of rain tomorrow, helping crops to recover from drought this summer. December futures for wheat delivery slipped $0.19 (2.8 percent) to $6.55 per bushel by 13:15 on CBoT.

If you have any questions and comments on the commodities today, use the form below to reply.

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