Dry weather causes global cocoa prices to increase

The cocoa contract traded in London closed at a seven-week high of £2,204 per ton yesterday. While the cocoa price in New York likewise closed trading at a seven-week high of $3,270 per ton, notes Commerzbank. 

The increases were triggered by fears among market participants that dry weather could slow bean development in Ivory Coast, the largest cocoa producing country, and thus have a negative impact on the main harvest that begins in October. What is more, the presidential elections due to be held next month in Ivory Coast are already casting their shadow - turmoil during the last elections almost five years ago drove prices up sharply.