Shortage says price of cocoa soaring

A WORLD shortage of cocoa beans is leading to bullish trading – with cocoa trading at £2,524 a tonne, its highest level since 1977.

The International Cocoa Organisation is forecasting a world deficit of 69,000 tonnes in 2009-10.

Prices have risen after a disappointing harvest in the Ivory Coast, which produces 40 per cent of the world's cocoa.

"Cocoa stocks are relatively low and the fundamental situation is relatively bullish," said Jonathan Parkman, head of agri-commodities at Fortis Bank Nederland.