According to EastFruit, сocoa futures climbed above $12,000 a ton in New York, reaching a fresh record amid mounting worries over reduced output in top grower Ivory Coast.
The most-active contract rose as much as 7.4% to $12,636 a ton, as fears over Ivory Coast’s production this season have re-emerged with dry weather posing the latest threat to trees. The surge in prices — New York futures have tripled this year — has also pushed companies out of the market, with lower activity further exacerbating price moves.
Current dry conditions in West Africa will mean lower output in February and March, ADM Investor Services analyst Mark Bowman wrote in a note.
Rainfall isn’t forecast in West Africa over the next seven to 10 days and the Harmattan wind, which brings dry and dusty weather from the Sahara desert, “could make matters worse” if the wind is strong, Bowman said.
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