The price of cocoa climbed to start Friday, but then quickly found itself on the decline. MarketWatch reported that cocoa opened today at 3,086.00. It climbed to its high of 3,119¢, but by 9:30 am was at a low of 3,058¢. Coffee opened at 208.90¢, reached a low of 205.40¢, but then steadily rose as the morning went on, sitting at 209.70¢ as of 9:50 am.
The price swings felt in the early hours just after the open may be a result of news that Cameroon is expected to enact measure to ramp up production of both beans. Analysts believe that flagging production in Africa is keeping cocoa and coffee prices high. MarketWatch reported that Cameroon will invest $1.2 billion between 2015 and 2020 to raise cocoa and coffee production. Through this plan, Cameroon expects to produce 600,000 metric tons of cocoa by 2020, 125,000 tons of robusta coffee, and 25,000 tons of arabica coffee. Some speculate that this could lead to a decline in prices in the long term as supply for both commodities rises.
CBS 19 TV reported that other African nations plan on enacting similar programs for coffee production, bringing the total supply down even further as production ramps up through west Africa.
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