Cocoa Posts High Gains
Cocoa posted gains on Wednesday after chocolate makers hedged against further gains and higher production costs by buying contracts.
Cocoa for March delivery increased by 12 pounds, or 1 percent, to $2,493 a metric ton on the Liffe exchange in London, making it the highest increase since May 2003.
According to the Commodity Futures Trading Commission, large speculators such as Hedge-fund managers increased their net-long positions in the New York cocoa futures for the week that ended Feb.5.
Cocoa for May delivery increased by $36, or 1.5 percent, to $2,452 a ton on ICE Futures U.S.
However, there are speculations that more favorable weather in Ivory Coast, the biggest cocoa producer, may affect cocoa gains.
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