Cocoa, little changed in London today, may gain on speculation that supplies of the chocolate ingredient might be limited before harvesting starts.
Global cocoa supplies are headed for the longest production shortfall in more than five decades as chocolate demand surges in Asia.
The International Cocoa Organization said Indonesia, Guinea and the Democratic Republic of Congo will join the group under a cocoa agreement on Oct. 1.
The third-biggest cocoa mid-crop on record in Ivory Coast and dry weather are fueling speculation the next harvest will be delayed in West Africa, the biggest growing region for the beans used to make chocolate.
Cocoa futures rose for a fourth session, capping the longest rally in a month, as rain and black pod disease threaten crops in Ivory Coast, the world’s top exporter. Coffee prices also gained.
Cocoa fell for the first time in a week on signs that global supplies will increase. Sugar gained, while coffee declined.
The frosty pod rot fungus spreading in Latin American cocoa crops represents a potentially “enormous” threat, according to the International Cocoa Organization’s Laurent Pipitone .
"Weather conditions are really favorable."
- Laurent Pipitone on Nov 05, 2014