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Smaller harvests in Ivory Coast and Ghana helped reduce supplies, with a large global deficit
Cocoa futures contracts on ICE in London reached a new record this Tuesday (2), responding to strong gains in New York on Monday, yesterday, when UK markets were closed for a public holiday, while sugar prices decreased.
The July cocoa contract closed up 2.2%, at 7.8 thousand pounds (R$49.1 thousand, at current prices) per ton, after setting a record of 8 thousand pounds (R$50, 9 thousand).
Prices in London rose in early trading as the market followed the sharp rise in New York earlier in the week. The rally was soon halted as the US market gave back some of the previous session’s gains.
Dealers said the market’s focus had turned to the mid-season harvest in Côte d’Ivoire, the biggest producer, which began this week with a lack of rain and strong sun, which could hurt production.
Ivory Coast announced Tuesday that it has increased its fixed price paid to cocoa producers for the mid-season harvest from April to September by 50%.
Weak main harvests from the two biggest producers, Ivory Coast and Ghana, have helped squeeze supplies, with a large global deficit widely predicted for the current 2023/24 season.
