Prospects of supplies not meeting demand this season pushed cocoa toward its top price in nearly two years on Tuesday, according to Bloomberg.
Also spurring the soft commodity higher in value during the Tuesday trade session was inclement weather in the globe's top growing region for the sweetener. The delivery of beans to ports in West Africa is projected to be delayed because of heavy rains. Cocoa production is projected to be 173,000 metric tons low for this year's consumption.
"If the heavy rain forecast for Ivory Coast and Ghana does come, it could interrupt deliveries to ports and thus world supplies of cocoa, at least for a time," states a Tuesday report authored by analyst Carsten Fritsch with Commerzbank AG in Frankfurt, according to Bloomberg.
At 9:05 a.m. on Tuesday, cocoa futures rose 0.56 percent, a $15 lift to $2,714 per metric ton.
Reuters reports production of the soft commodity is forecast to increase by as much as 20 percent in Malaysia by 2020, according to director-general Lee Choon Hui with the Malaysian Cocoa Board. The nation is driving toward processing as many as 360,000 tons of cocoa beans within seven years.
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