Cocoa surges 3 percent on hopes of better demand

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Associated Press

Posted on October 16, 2012 at 3:00 PM

Updated Tuesday, Oct 16 at 3:02 PM

The price of cocoa is surging 3 percent as new, positive signs for the U.S. economy are raising hopes that consumers may splurge on more chocolate confections.

Cocoa for December delivery rose $64 to finish Tuesday at $2,418 per metric ton.

The price has fallen about 10 percent since Sept. 6 because of plentiful supplies and weak demand. Investors are more optimistic now on improving reports about the U.S. economy.

Investors will watch closely to see how the holiday retail sales shape up. Analysts say much will depend on improving economic growth in the U.S. and Europe because chocolate is a luxury.

In other trading, prices are higher for oil, gold, corn and soybeans. Copper, wheat and wholesale gasoline are lower.

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