US cocoa futures settled at a five-week high for the second straight day on Wednesday, buoyed by fund and manufacturer buying while quality concern about top producer Ivory Coast's mid-crop continued to underpin the market, traders said.
"We keep getting fund business in there, that's why it's up," one dealer said. The benchmark ICE July cocoa contract settled up $29 at $2,780 per tonne, the highest settlement since March 14.
Trades ranged from $2,724 to $2,792. The market trades until 3:15 pm By 1:04 pm EDT (1704 GMT), the July contract was up $39 at $2,790 per tonne while the rest ranged from $8 to $46 higher. Ivory Coast's mid-crop season runs from April to September. London cocoa also closed firm with the July contract finishing 10 pounds higher at 1,507 pounds per tonne, in dealings from 1,482 to 1,513 pounds.
In related news, the global food price crisis could affect cocoa production if it triggers social unrest in key growers such as Ivory Coast and Cameroon, the 10-nation Cocoa Producers' Alliance (COPAL) said. ICE volume, a total of 8,615 cocoa futures contracts traded on Tuesday while open interest rose 3,428 lots to 135,652 lots, exchange data said.