Impact El Nino weather in West Africa on Cocoa prices : Cocoa prices climbed higher Monday as a strengthening El Nino weather phenomenon threatened major growing regions in West Africa. Cocoa for December delivery rose 0.5% to $3,075 a ton on the ICE Futures U.S. exchange.
It has been dry in Ivory Coast and Ghana over the last few weeks, according to Weather Bell Analytics, and showers are expected to continue to be below normal over the next 10 to 30 days because of El Nino conditions in the Atlantic. Together, the two countries grow 60% of the world's cocoa and drought there can harm production.
It has been dry in Ivory Coast and Ghana over the last few weeks, according to Weather Bell Analytics, and showers are expected to continue to be below normal over the next 10 to 30 days because of El Nino conditions in the Atlantic. Together, the two countries grow 60% of the world's cocoa and drought there can harm production.
"The world's top producers should see some negative impact during the 2015/16 growing season," the Hightower Report said in a note, adding that there is room for upside momentum for cocoa prices given the market's recently less bullish stance.
As of Tuesday, money managers, hedge fund and other investors betting on higher prices outweighed bearish investors by 34,817 contracts, the smallest gap between the two since May 12, according to the U.S. Commodity Futures Trading Commission.
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