Concerns about inclement weather in key regions of Ivory Coast last week helped drive cocoa futures to their top price last week in almost 10 months, according to Reuters.
The world's top grower of the soft commodity saw heavy rains in the primary growing regions and at two notable ports less than one month prior to the kick off of the 2012-2013 season. One exporter said concerns about the rain do not help instill confidence and he forecast the main crop will begin the season weak and deliveries will slow down.
"Prices have gone up in line with the international markets. Exporters are getting organized ahead of the new cocoa season. Demand is there but not much volume," a purchasing manager at an international cocoa export firm told the news source.
At 1:24 p.m. on Tuesday, cocoa futures fell 1.61 percent, a $42 loss to $2,568 per metric ton.
Bloomberg reports worldwide supplies of cocoa are projected to trail demand by 101,000 tons for the 2012-2013 season, representing the first shortage in 36 months, according to the Macquarrie Group.
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