Demand for cocoa will not keep pace with supply of the soft commodity, according to a lender with interests in at least 30 African nations.
Bloomberg reports Ecobank Transnational of Togo said consumption of cocoa will drop as the 2011-2012 season begins in October, marking the second straight season of abundant supplies. The 200,000-metric ton surplus for this season will be augmented by an excess of 100,000 metric tons for next season.
"Grindings are more likely to fall than rise next year," commodities specialist Edward George of Ecobank told Bloomberg via email., responding to inquiries. "We do not expect a global deficit next year."
At 8:06 a.m. on Thursday, cocoa futures slipped 0.10 percent, a $3 drop to $2,949 per metric ton.
The Ivory Coast, as the globe's top producer of the soft commodity, is slated to grow 1.45 million tons of cocoa this season, George told Bloomberg. Ghana is set to generate one million tons.
Reuters reports cocoa futures were supported by a weakening dollar though on Tuesday, the soft commodity scraped its lowest price since mid-late June.
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