Cocoa growing areas in West Africa, the world's top producing region, will get below-average rain in the next two weeks, eroding crop prospects for a harvest that starts in October, MDA Information Systems Inc. said.
Southern areas in Ivory Coast, the biggest grower, and Ghana, the second-largest, will get less than 0.5 inch (1.3 centimeters) of rain, or about 25 percent of the usual precipitation for this time of year, extending a deficit in the past month, Kyle Tapley, a meteorologist at the Gaithersburg, Maryland-based forecaster, said today in a telephone interview.
In the past month, the region got about 1 inch of rain, compared with 4 inches historically, he said.
Eoin Treacy's view Cocoa
almost halved between March and December last year and have been ranging between
$2000 and $2500 for the last five months. It broke upwards this week and a sustained
move below $2350 would be required to question medium-term scope for additional
London Cocoa declined even more but has held a progression of higher reaction lows since December and broke back above the 200-day MA last week. A sustained move below the trend mean would be required to question medium-term scope for additional upside.