According to Bloomberg, rather than being an estimated 119,000 metric tons larger than demand, supplies of cocoa will be 187,000 metric tons larger, according to the International Cocoa Organization. Output from throughout the globe is projected to 11 percent higher than the previous year’s production. Supplies from one nation, Ghana, will surge.
The crop in the West African nation will climb to a record amount of 960,000 tons as enhanced because of "conducive weather conditions, new farms coming into production, improved farm husbandry, increased fertilizer application and boosted farmer incentives," the group stated.
At 12:37 p.m. on Monday, cocoa futures were unchanged at $2,878 per metric ton.
The production from Ivory Coast, the globe’s top grower of the soft commodity, also will rise. This year’s production will increase to 1.3 million metric tons from 1.242 during the year prior. Production is expected to rise after the resolution of a political dispute from the nation’s presidential election.
Reuters reports the Ivory Coast is producing 15 percent more cocoa now than at this time last year.
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