Global cocoa market returns to gains on supply fears

Cocoa futures rose again after suffering their biggest weekly loss since October, reflecting uncertainty over global supply. Prices in London and New York rose about 4% on Monday, but then retreated slightly. That followed a more than 15% drop in New York futures last week, an unprecedented decline since late October. The market remains volatile, driven by concerns about the crop in West Africa, the world’s largest cocoa-producing region. Those fears have made the commodity one of the most valued in 2024, as the market grapples with exchange-certified inventories at their lowest level in nearly two decades. While speculators are taking advantage of record prices to profit, producers and processors are worried about the impact of another poor harvest, which could further tighten global cocoa supplies. In the grains market, corn futures also gained, driven by weather concerns in Argentina. Dry weather threatens crops, despite forecasts of rain for this week, which could alleviate ...