The 2010-2011 season is likely to see a surplus of 286,000 metric tons, states a Wednesday report from Marex Spectron Group. Exportation of cocoa beans from Ivory Coast, the globe's top supplier of the commodity, have resumed after exports were banned from late January through April as the nation worked through a political dispute following the November 2010 presidential election.
"Prices are still much too high considering the massive surplus that is projected," states a Friday email from Frankfurt-based Commerzbank analyst Carsten Fritsch, who forecast the average price of the commodity will be $3,000 per metric ton during the third quarter and $2,900 per metric tons during the three consecutive months.
At 8:58 a.m. on Friday, cocoa futures edged up 0.06 percent, a $2 rise to $3,188 per metric ton.
Reuters reports the sharp rise of the commodity is likely to reduce the consumption of chocolate, according to Barry Callebaut, the globe's top maker of chocolate. The company supplies giants such as Nestle and Hershey.
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