Cocoa fell today on expectations of growing supply from the African continent. Ivory Coast, the biggest producer of the agricultural commodity in the world, is expected to make especially large contribution to global stockpiles. The US National Oceanic and Atmospheric Administration predicted that Ivory Coast and Ghana (the second biggest grower) will receive about 40 to 50 millimeters of precipitation by the next week. Rains should help crops.
World inventories had a surplus of the beans last year and this year’s projected shortage is not expected to erase reserves. Cocoa entered bear market in the middle of the last month and the expected excess makes it unlikely for the commodity to rally anytime soon.
May futures for delivery of cocoa fell $24 (1.15 percent) to $2,059 per metric ton as of 16:51 GMT on ICE today.
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