Cocoa prices extend gains amid worries over tight supply
Cocoa prices rose for a fourth day as hot and dry weather in some parts of Ivory Coast led to worries over tight supplies.
Futures in New York for March delivery rose to the highest level in almost two weeks as growers are starting to worry about the impact of the seasonal dusty Harmattan winds on crops. The lack of showers in central Ivory Coast is also raising concerns. Prices are rising this week after declining in the previous two.
“Continued hot and dry weather over West African growing areas benefited cocoa prices as that should have a negative impact on the region’s upcoming mid-crop output,” Hightower said in a report. A weaker dollar “particularly benefited cocoa as that helps to strength its near-term demand outlook.”
The Bloomberg Dollar Spot Index was 0.4% lower in a third day of declines.
In other soft commodities, raw sugar for March delivery declined for the first time in three, while Arabica coffee rose.
