Cocoa futures climbed to about $4,600 per tonne, the highest level since May 11, supported by short covering and weather-driven supply concerns. Market participants are closely watching the close of the mid-crop harvest in West Africa and the approach of the main crop, which begins in September, against a backdrop of persistent El Niño risks.
In the world’s leading producer, Ivory Coast, farmers have warned that recent above-average rainfall may cause flooding, increase disease pressure, and undermine bean quality as the mid-crop harvest enters its final phase. Although rainfall is essential for cocoa development, excessive moisture promotes fungal diseases and a higher incidence of insect pests, particularly during the crucial period for pod formation and ripening.
Adding to supply worries, ICE-certified cocoa stocks at US ports declined by 3,828 bags to 2,914,908, reinforcing expectations of a tightening market.
