Price for cocoa kept growing throughout the previous week, and today it has reached the new high of 2700. According to analysts, such steady growth is caused by two reasons: political instability in Cote d’Ivoire and dry weather in West Africa.
Major fundamental factors for the nearest future:
- unstable situation in Cote d’Ivoire,
- reconsideration of ICCO forecast for 2012 towards deficit reduction,
- reduction of cocoa processing during the second quarter of 2012 in Europe and North America,
- dry weather at the south of West Africa in August,
- possible influence of El Nino on cocoa yield,
- cocoa stocks at ICE storages are higher than the five-year high.
According to the Analytics Team of Commodity Trading Department of , the price is highly likely to keep growing, although strong level 2700 may hold growth or even lead to the price pullback down. If the situation in Cote d’Ivoire gets normal, the price may drop, following its seasonal trend.
