Cocoa rebounded in London as traders weighed slowing deliveries in Ivory Coast, the world’s largest producer, and the possibility of a large mid-crop, the smaller of two annual harvests starting in April. Coffee rose.
Cocoa farmers in Ivory Coast, the world’s largest producer of the beans, will harvest the biggest crop in three years this season partly due to “good” rains during the dry period, according to Ecobank Transnational Inc.
A record global grain harvest has done nothing to help Jailos Kamuloni feed his family in Malawi, where costs have skyrocketed for the corn flour used to make the thick nsima porridge that people eat at almost every meal.
Cocoa rebounded in London before the delivery of the December futures contract tomorrow amid speculation bean arrivals at ports in top producer Ivory Coast will start to slow next year. Robusta coffee advanced.
Above-average rain in some cocoa- growing areas of southwestern Ivory Coast, the world’s top producer, is benefiting this season’s crops, easing concern slow bean deliveries next year will deepen global shortages.
Cocoa supplies may outpace demand for a second year in the 2011-12 season starting in October as consumption falls, according to Ecobank Transnational Inc., the Togo-based lender operating in more than 30 African countries.
An end to sugar quotas in the European Union, expected by the EU Council as early as 2017, may promote trade of the sweetener within Africa as Ethiopia and Nigeria plan to raise output, said Ecobank Transnational Ltd.