Key growing regions of Ivory Coast are set to be nourished by an average of as much as 0.5 inches of rain per day through this Friday, according to a report issued by AccuWeather. The moisture, while good for crops, does not benefit the soft commodity's market price, one broker told the news source.
"Fundamentally speaking, rain in the Ivory Coast forecast is looked upon as bearish," states an email to Bloomberg penned by senior commodity broker John Caruso with RJO Futures. "Commercial traders are unwinding long bets."
At 2 p.m. on Wednesday, cocoa futures dropped 0.83 percent, a $17 loss to $2,042 per metric ton.
The Business Recorder reports cocoa crops in the West African nation have been well nourished since earlier this week. Further, forecasts for cocoa deficits are progressively contracting for the 2012-2013 harvest. Exporters of the soft commodity estimated that as many as 16,000 tons of cocoa beans were shipped from the nation's two ports from February 25 through March 3.
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