(Bloomberg) -- Cocoa rose in New York as traders focused on prospects for production key West African growers.
Futures climbed as much as 2.6 per cent, reversing earlier losses. Light to moderate rain has fallen in Nigeria and Cameroon, with expected showers this week likely to aid crop growth, according to forecaster Maxar. Some other parts of West Africa should have drier conditions, stressing crops, Maxar said.
Still, weather risks and challenges for farmers persist, threatening to keep beans historically expensive. While cocoa has pulled back from a record set earlier this year — partly on expectation for better harvests in some West African growers — prices are double what they were a year ago.
Traders will keep an eye on weather conditions as Africa’s main-crop harvest approaches.
“The rains are coming back at the right time after farmers had exhaustively sprayed their farms against insect attacks,” said Rahamatu Kila Tume, a farmer in Loum, Cameroon. “The chemicals have had enough time to penetrate the plants significantly, reducing chances of further serious insect attacks.”
Farmers in southeast Nigeria are facing difficulties accessing plantations following rains. In the southwest, conditions remain dry, affecting seedlings planted in late May, according to Solomon Taiwo, a zonal coordinator at the Cocoa Farmers Association of Nigeria.
--With assistance from Charlotte Hughes-Morgan.
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