Conjecture about crops in the top grower benefiting from strong rainfall last week pulled cocoa futures to their lowest value in seven days on Friday, Bloomberg reports.
The soft commodity's growing regions in West Africa, like Ivory Coast, saw heavy rainfall, MDA Weather Services in Maryland stated in a report earlier this week. Ivory Coast presently is harvesting the smaller of two yearly crops, which is known as the mid-crop. The follow-up production typically benefits from rain that nourishes the crops at this time. The Daloa region of Ivory Coast, located in the central-western region, took on 40.3 millimeters of rain from May 11 through May 20, which trumps the typical amount of 39 millimeters.
"More rain in the Ivory Coast was seen as beneficial for the mid-crop there," states a report penned by futures specialist Arthur Liming with Citigroup Inc. in Chicago, according to Bloomberg.
At 11:07 a.m. on Friday, cocoa futures fell 1.31 percent, a $30 loss to $2,253 per metric ton.
Reuters reports Cargill announced earlier this month that it is well into the construction of a facility for processing cocoa in Indonesia, noting that demand for chocolate and additional products is growing.
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