NEW YORK (TheStreet) -- The July coffee contract price was popping 2.4% to $2.8365 a pound and July cocoa was rising 0.6% to $3,074 a metric ton on supply concerns and political unrest, respectively.
Cocoa popped on violent power struggles in the world's biggest cocoa producing country, the Ivory Coast, while coffee took off on lower-than-expected exports from Uganda, the second-largest African exporter. The Uganda Coffee Development Authority has lowered its export figure by 16% to 2.6 million bags in the year ending Sept. 30 from the previously expected 3.1 million bags, due to drought.
PFG Best analyst Robin Rosenberg said recently that ICE exchange (InterContinental Exchange) coffee stocks remain at low levels. "In fact they have decreased twenty eight months in a row."
Shares of coffee chain Starbucks (SBUX) were rising 0.8% to $36.04, roaster Peet's Coffee & Tea (PEET) was rising 1.2% to $47.17, K-Cup maker Green Mountain Coffee Roasters (GMCR) was falling 1.5% to $65.82 and Maxwell House maker Kraft (KFT) was adding 0.4% to $32.28.Candy company Hershey (HSY) was rising 0.5% to $56.59.
Despite reports of weakening fundamental support, cotton caught the wave of the commodities upswing Wednesday, before retreating.
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