Cocoa prices climb for fifth day as tight supply pain lingers

Cocoa futures rallied for a fifth day as expected tighter supplies in the coming months push prices to near record levels.

The most active contract in New York rose as much as 2.9%. Prices also jumped in London. Dry weather over West Africa is now threatening the mid-crop harvest, which is currently underway, according to The Hightower Report.

A global shortage of cocoa has caused futures to soar above $10,000 per ton — more than double the level at the start of the year — and hit a record earlier this month.

The surge has begun to pressure some traders, while encouraging growers to return to the market.

Ghana, one of the world’s top producers, has begun talks with traders to delay deliveries due to a lack of beans, according to people familiar with the negotiations.

The country has faced difficulties fulfilling its contracts in recent seasons due to lower output, forcing it to roll over deliveries and putting more strain on the global market.

Ivory Coast has also asked buyers to wait until the mid-crop to help ease the scarcity.