Cocoa reached a 23-month high in New York, extending the biggest gain since August, as rain threatens to hamper harvesting and supplies are set to trail demand according to the International Cocoa Organisation which forecasts a deficit in the next four years.
Cocoa for delivery in December advanced 0.7 percent to $2,719 a ton by 5:11 a.m. on ICE Futures U.S. in New York after touching $2,726, the highest since Nov. 8, 2011. Yesterday’s 3.4 percent climb was the biggest since Aug. 5. Cocoa for the same delivery month gained 0.6 percent to 1,757 pounds ($2,823) a ton on NYSE Liffe in London.
Cocoa production will fall 173,000 metric tons short of consumption in the 2013-14 season begun this month, estimates Macquarie Group Ltd. A 113,000-ton shortage is forecast for the following period, said Macquarie analyst Kona Haque, who correctly forecast a third-quarter price rally. Growing areas in leading producers Ivory Coast and Ghana may get as much as 150 percent of normal rain in October’s second half, slowing the harvest, forecasts World Weather Inc. in Overland Park, Kansas.