(Bloomberg) — Cocoa futures declined for a second day as good weather in some key growing areas in West Africa raised expectations for crop prospects in the next season.
Futures fell as much as 4.1%, the biggest drop since July 1. However, prices have soared around 90% so far this year as poor harvests in top producing nations have left the world facing a huge shortage.
“There is some pressure on prices due to good weather,” said Michael McDougall, managing director at Paragon Global Markets. But, futures are holding the uptrend that began at the start of this month because of persistent concerns about long-term supply issues and renewed political uncertainty in Ivory Coast, he said.
More isolated to scattered showers were expected in parts of Nigeria and Cameroon in the five-day period that began on Friday, according weather forecaster Maxar. “The additional rains will keep soil moisture favorable for crop growth,” it said.
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