Cocoa prices rose on Tuesday, with March NY cocoa reaching a contract high and nearest-futures (CCZ23) hitting a 46-year high.
Heavy rain in West Africa has limited fieldwork and encouraged crop disease, raising concerns about cocoa production.
The strength of the British pound limited gains in London cocoa.
Signs of lower cocoa output in Ivory Coast, the world’s largest producer, are bullish for prices.
ICE-monitored cocoa inventories in U.S. ports have declined steadily since June and reached a 2-1/2 year low on Tuesday.
Recent heavy rain in West Africa has caused black pod disease to spread, a major factor supporting cocoa prices.
The spread of the swollen shoot virus threatens Ivory Coast cocoa crops, potentially reducing yields and killing plants.
Concerns about lower cocoa production in Ghana, the world’s second-largest producer, are also supporting prices.
Cocoa prices remain supported by concerns that an El Nino weather event could undercut global cocoa production.
Soaring cocoa prices are undercutting global cocoa demand.
The International Cocoa Organization (ICCO) reports that global 2022/23 cocoa production increased +2.4% y/y to 4.938 MMT.
ICCO projected a global cocoa deficit for 2022/23 of -146,000 tons.