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Home Business Agribusiness

Cocoa extends rally to record $10,324 as dry weather adds to supply woes

1 year ago
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Cocoa extends rally to record $10,324 as dry weather adds to supply woes

Cocoa futures extended their rally to a fresh record as adverse weather in West Africa adds to the supply shortage stalking the market.

While some rain reached cocoa areas in parts of the region over the weekend, more will be needed to ease dryness facing crops, forecaster Maxar said in a note.

Ivory Coast has just begun collecting its mid-crop harvest, the smaller of the two gathered annually, and it’s expected to be at least 17% below the prior season.

The lack of moisture — and above-average temperatures — could further weigh on production and has given an “additional boost” to prices, the Hightower Report said in a note.

Most-active cocoa futures in New York rallied as much as 2% on Tuesday to $10,324 a ton. They have more doubled this year.

Tags: CocoaCocoa extends rally to record as dry weather adds to supply woesdry weather
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