Cocoa futures extended declines in New York after a blistering rally prompted traders to lock in gains.
The most-active contract edged down amid thin trading ahead of public holidays. Futures last week hit a record, buoyed by forecasts for reduced output in top growers Ivory Coast and Ghana, at a time when supply is already tight.
The market is keeping an eye on the development of cocoa trees in West Africa as the region enters the Harmattan season, which blows in dry, dusty weather from the Sahara. Farmers are already seeing an impact on the midyear crop.
“It hasn’t rained for over two months and the cocoa trees are starting to show signs of stress,” said Michael Acheampong, a farmer in Ghana’s Kwarbeng area. “This has been further compounded by the Harmattan, which has intensified.”
Here’s a roundup of farmers’ comments across the rest of West Africa:
Ivory Coast
The Harmattan is beginning to affect leaves on the cocoa trees, which are becoming dry in some places in western Ivory Coast
Nigeria
The main-crop harvest in the south is concluding. The weather has turned dry and the soil is losing moisture, threatening flowering
Cameroon
Farmers are spraying chemicals to keep leaves fresh and resistant to the effects of the Harmattan.
Main-crop harvesting is at its peak and farm-gate prices are improving.
credit: bloomberg.com
