Cocoa futures surged for a fifth consecutive day, driven by anticipated tightening supplies in the upcoming months, propelling prices to near record highs.
The primary contract in New York experienced a significant uptick of up to 2.9%, mirroring a similar upward trend in London.
Concerns over dry weather conditions in West Africa pose a threat to the ongoing mid-crop harvest, as highlighted by The Hightower Report.
A global cocoa shortage has propelled futures to surpass $10,000 per ton, more than doubling since the beginning of the year, and reaching a historic peak earlier this month.
The substantial surge is starting to exert pressure on certain traders, albeit encouraging growers to re-enter the market.
Ghana, a leading cocoa producer, has initiated discussions with traders to defer deliveries due to bean shortages, as informed by sources familiar with the negotiations.
Challenges in meeting contractual obligations have plagued Ghana in recent seasons due to diminished output, necessitating the rollover of deliveries and exacerbating strains on the global market.
Similarly, Ivory Coast has appealed to buyers to postpone purchases until the mid-crop period to alleviate the scarcity pressure.
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