COMMODITIES : Cocoa Futures Jump on Ivory Coast Reports

Prices of cocoa futures surged Wednesday at the Coffee, Sugar & Cocoa Exchange in New York on reports that the Ivory Coast--the world’s largest producer--would not lower farmer cocoa prices.

The expected move would come at a time world cocoa prices are at a 13-year low, and traders took the reports as an indication that the Ivory Coast will continue to withhold cocoa from the world market, analysts said.

The surge in cocoa prices comes when world stocks are at record level and the Ivory Coast is about to begin harvesting their new crop, said Sandra Kaul, an analyst with Shearson Lehman Hutton Inc. in New York.

Talk that the African nation won’t lower prices paid to cocoa farmers was “taken as a sign by the market that the Ivory Coast . . . may perhaps continue (its) very limited sales policy,” and that could turn the surplus into a deficit, she said.

Cocoa prices were $39 to $61 higher, with the contract for delivery in December at $1,228 a ton.

At the New York Mercantile Exchange, reports of burgeoning supplies and rumors about defections at the Organization of Petroleum Exporting Countries sent oil futures prices plunging.

Energy Prices Skid

The November contract for West Texas Intermediate dropped 47 cents to settle at $12.60 a barrel in heavy, hectic trading. The benchmark U.S. crude traded as low as a $12.28 barrel during the session.

Crude oil was 12 to 47 cents lower, with the contract for delivery in November at $12.60 a barrel; heating oil was 0.41 to 0.52 cent lower, with November at 37.76 cents a gallon, and unleaded gas was 0.55 to 1.67 cents lower, with November at 39.44 cents a gallon.

Profit taking among corn and soybean traders after Tuesday’s rallies pressured prices at the Chicago Board of Trade.

An outlook for favorable harvesting weather for the next several days in the Corn Belt added pressure, analysts said.

An anticipated overnight frost in key soybean-growing regions that would have threatened crops failed to materialize and helped keep the lid on buying enthusiasm in the bean pit, said Cathy Leow, assistant vice president at Thompson McKinnon Securities Inc.

Wheat gained support from continued expectations that signing of the U.S.-Soviet grain pact is near, she said.

Wheat prices settled 3 to 4.25 cents higher, with the contract for delivery in December at $4.2625 a bushel; corn was 0.50 cent to 2 cents lower, with December at $2.935 a bushel; oats were 1 cent to 2.5 cents lower, with December at $2.4675 a bushel, and soybeans were 3 to 8.5 cents lower, with November at $8.23 a bushel.