Both Ivory Coast, the top producer, and Ghana, the second-largest producer, are enjoying healthy crops that might surpass demand by 350,000 metric tons. The Ivory Coast's surplus is estimated to be about 1.6 million tons while the crop in Ghana will yield 900,000 additional tons, according to Gerry Manley, director and global head for cocoa of Olam International.
"Most of the surplus will come from West Africa and is largely unsold," Manley told the news service. "Cocoa is currently overvalued."
At 2 p.m. on Wednesday, cocoa futures climbed 3.18 percent, a $96 increase to $3,119 per metric ton.
Inside Futures attributes cocoa's climb to a weaker U.S. dollar index while prices for crude oil were firmer as prices set seven week high values. The publication also noted trading conditions were "choppy" and noted a significant benchmark for the soft commodity is the $3,200 per metric ton price.
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