Cocoa hits highest price in 46 years‎

Cocoa prices jumped to their highest levels in 46 years on the Intercontinental Stock Exchange in London, as bad weather in West Africa threatens production prospects for the main producers of the main ingredient in making chocolate.

According to Reuters, the benchmark September contract for cocoa in London rose more than 2 percent on Wednesday to 2,590 pounds per ton. It reached the highest price during the session at 2594 pounds, which is its highest level since 1977.

Prices are rising due to a lack of supply in the market for cocoa beans, most of which are produced in Ivory Coast and Ghana. The volume of incoming cocoa shipments to the ports of Ivory Coast for export decreased by about five percent this season

This month, the International Cocoa Organization raised its forecast for a shortage in global cocoa supplies from about 60,000 tons to 142,000.

“This is the second season in a row that we see a supply deficit,” Leonardo Rossetti told an analyst at Stone X brokerage.

He added that the inventory-to-consumption ratio, an indicator of the availability of cocoa in the market, is expected to drop to 32.2 percent, its lowest level since the 1984/85 season.

More than average rains in Ivory Coast led to the flooding of some cocoa fields, which could harm the main crop, which begins in October.

Cocoa prices also rose in New York, with the September contract rising 2.7 percent to $3,348 a ton, its highest in seven and a half years


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