The world's cocoa sector may be facing a structural surplus that risks depressing global prices and dealing a blow to producer country and farm revenues in the coming years, a senior official with International Cocoa Organization (ICCO) said on Wednesday.
After rising steadily for several years, cocoa futures have tumbled since September with New York cocoa falling to its lowest level in nearly a decade earlier this month on the back of bumper crops around the world.
Global production is set to climb by almost 15 percent in 2016/17, according to the ICCO. Demand is failing to keep pace, resulting in a projected global surplus of 264,000 tonnes.
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