If you are a chocolate lover then you would certainly not love this piece of news. As per reports it is expected that prices of cocoa would jump by fifty percent and that would surely affect the final price of chocolate bars. Investment bank Fortis stated that the price of cocoa is expected to shoot up to £1,500 per tonne from the existing figures of £984 by the end of October. Though there is no shortage of cocoa crop but processors fearing a downward price correction lack cover and therefore would be forced to buy even at current high levels. Decision about forward cover would be taken by major manufacturers by the month of June when information about year 2007-08 crop is available.
The month of April had seen cocoa prices shoot up after the cocoa belt of West Africa experienced severe dryness but fortunately rains arrived in time to prevent any collapse of the smaller crop. Though the production is expected to increase but expect a deficit of 238,000 tonnes of cocoa this year and unfortunately get ready to cough up more for your favorite bar of chocolate.
Via ft
