The cocoa price in London briefly exceeded £2,000 per ton earlier in January 2020, the first time it had done so since November 2016.
The price in New York also recently rose above US$2,800 per ton for the first time since May 2018.
Cocoa prices are thus up by approximately 10 per cent since the beginning of the 2020.
“Although there have been some patchy rain showers, these have not been enough in many places to offset the moisture deficit,” Commerzbank said. “As a result, developing cocoa pods may not grow as large as they would have done.
“However, fears about significant crop shortfalls appear excessive at the current time, given that the period when some rainfall is possible is not over yet.”
Commerzbank said some cocoa farmers have expressed optimism about the prospects for the mid-crop that begins in April and continues until September.
“The main crop, which is still underway, is certainly no cause for concern,” said Commerzbank. “Between the start of harvesting in October and mid-January, shipments to Ivorian ports totalled 1.35 million tons, and as such are 9 per cent up on the same period last year.”