Cocoa Increases as the Dollar Falls and Pound Gains

Cocoa posted the highest gain in more than five years on Thursday amid dry weather in the commodity's biggest producer and a rise in the U.K pound against the dollar.

Dry weather in West Africa is threatening supplies. Neighbors Ghana and Ivory Coast are currently experiencing drought as well as a desert wind that blows from the Sahara stresses cocoa trees.

The pound which is used to trade cocoa in Ivory Coast, rose by 0.4 percent against the dollar, increasing demand for commodities traded in New York.

Cocoa futures for March delivery increased by $37, or 1.6 percent, to $2,325 a metric ton on the ICE Futures U.S., formerly the New York Board of Trade.

Following cuts of the interest rate twice this month by the Federal Reserve, the dollar fell against major currencies.