April 5 (Bloomberg) — Cocoa futures retreated from a five- week high in New York on speculation that candy makers will put off purchases in anticipation of lower prices. Coffee rose to the highest level since January.
Candy makers “have got their stuff for now” and have no pressing need to add to cocoa inventories, said Jimmy Tintle, a Transworld Futures analyst in Tampa, Florida. “There’s more downside action between April and June.”
Prices jumped on April 1 after shipments slowed in Ivory Coast, the world’s largest producer. Forecasts for a bigger crop from the country and a stronger dollar have helped reduce cocoa futures by 10 percent this year.
Cocoa for May delivery fell $37, or 1.2 percent, to $2,953 a metric ton on ICE Futures U.S. in New York, the biggest drop for a most-active contract since March 24. On April 1, the price touched $3,000, the highest level since Feb. 23. The market was closed on April 2 for a holiday.
Cocoa may fall to $1,920 in June, should prices drop below $2,800 in two weeks, Tintle said.
In another ICE market, arabica-coffee futures for May delivery rose 2.25 cents, or 1.6 percent, to $1.3965 a pound, after touching $1.3985, the highest price for a most-active contract since Jan. 25. The commodity has increased 2.7 percent this year.