Investing.com -- Cocoa futures in New York have surged to a new record, surpassing $12,000 a ton. This sharp increase is due to growing worries about diminished production in Ivory Coast, the world's leading cocoa producer.
The most active contract saw a rise of up to 3.4%, reaching $12,163 a ton.
This year has seen cocoa futures nearly triple in value, predominantly due to poor harvests in West Africa. This has resulted in the most severe deficit on record, compelling companies to dig into their reserves. London prices also experienced a rally, with an increase of over 3%.
Concerns about supply have been reignited due to the anticipation of a weaker than expected crop in the Ivory Coast for the current season. The country, responsible for over a third of the world's cocoa production, is projected to produce 1.9 million tons in the 2024-25 season.
This represents a nearly 10% drop from the government's initial prediction of approximately 2.1 to 2.2 million tons at the season's commencement in October. A poorer harvest will make it more challenging to replenish stockpiles that are currently on a downward trend.
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