Cocoa output from Indonesia will probably drop to the lowest in a decade as rains in the third- biggest grower hurt flowering and delay the harvest, curbing supplies of the chocolate ingredient amid a global shortage.
“Strong” cocoa deliveries in top growers Ghana and Ivory Coast are reducing global shortage forecasts for the season, according to Barry Callebaut AG, the world’s biggest bean processor and top maker of bulk chocolate.
Cocoa output in Ghana, the world’s biggest producer after Ivory Coast, will exceed this season’s target due to “good” weather and an increase in plantings, according to the country’s industry regulator.
Cocoa climbed to the highest level in almost three weeks in New York as bean processing in Europe, the biggest consuming region, gained more than traders had forecast in the fourth quarter. Coffee and sugar declined.
Cocoa processing in Europe, the biggest consuming region, probably rose for a third quarter in the three months ended Dec. 31, with global economic growth helping to support demand for the beans used to make chocolate.