Cocoa prices at highest level since 1978

New York, Nov 11 (IANS) Cocoa prices topped $4,000 per tonne in New York on Friday, the highest since 1978, as the outlook of poor crop harvests across West Africa has been a bullish factor pushing prices higher this week.

There is also an increasing risk that El Nino-induced weather disturbances could cause the global cocoa market to sink into a deficit for the third year, Zero Hedge reported. 

According to Bloomberg, harvests in Ivory Coast and Ghana - some of the world's largest cocoa producers - are producing lower crop yields, which has led to tighter supplies, therefore supporting higher prices. 

"The market does not seem convinced that production will recover enough to avoid a supply deficit for 2023/24," ADM Investor Services Inc. analysts said in a note, Zero Hedge reported.

Cocoa futures rose 1 per cent in New York, topping $4,000 a tonne for the first time in 45 years.

Earlier this week, Oreo-maker Mondelez International said it would have to hike prices on some of its products due to the soaring cocoa and sugar prices. 

Meanwhile, sugar prices hit decade highs on global shortage fears in April. And Arabica coffee prices are set to move higher after inventories hit 24-year lows, Zero Hedge reported.