Aug. 28 (Bloomberg) -- Cocoa futures climbed the most in three weeks as Ghana, the world’s second-biggest producer, plans to cut pesticide subsidies for farms. Coffee, and orange juice also rose, while cotton and sugar slid.
The Ghana Cocoa Board will fund three applications of pesticides in cocoa farms in the 12 months starting in October, down from six last year as revenue declines, Noah Amenyah, a spokesman for the regulator, said yesterday. Purchases by the board, which buys all cocoa produced in Ghana, reached 800,000 metric tons from Oct. 1 through Aug. 8, down from 829,000 tons a year earlier, KnowledgeCharts, a unit of Commodities Risk Analysis in Bethlehem, Pennsylvania, said.
“This will only lead to more yield losses because of persistent pests that will infest the cocoa crop if spraying stops,” Michael Smith, the president of T&K Futures & Options Inc., in Port St. Lucie, Florida, wrote in an e-mail. “They are already dealing with lower yield potential because of drought conditions in the growing regions.”
Cocoa for December delivery climbed 1.8 percent to settle at $2,498 a ton at 12:07 p.m. on ICE Futures U.S. in New York, the biggest advance since Aug. 7. Prices are up 8.7 percent this month as dry weather threatened crops in Ghana and Ivory Coast, the top grower.
Arabica-coffee futures for December delivery increased 1.5 percent to $1.1845 a pound in New York.
Orange-juice futures for November delivery gained 0.8 percent to $1.367 a pound. Cotton futures for December delivery slid 0.5 percent to 83.75 cents a pound.
Raw-sugar futures for October delivery dropped 0.1 percent to 16.44 cents a pound on ICE.
--Editors: Millie Munshi, Thomas Galatola