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Barchart
Rich Asplund

Excessive Dryness in West Africa Supports Cocoa Prices

May ICE NY cocoa (CCK26) on Wednesday closed up +45 (+1.36%), and May ICE London cocoa #7 (CAK26) closed down -17 (-0.68%).

Cocoa prices settled mixed on Wednesday, with NY cocoa posting a 2-week high.  Dry conditions in West Africa are supportive of cocoa prices, as recent rainfall has been insufficient to ease drought concerns in the Ivory Coast and Ghana.  According to the African Flood and Drought Monitor, as of March 29, drought conditions blanket more than half of the Ivory Coast and about two-thirds of Ghana.

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