Top cocoa trader Olam warns of global deficit
Olam International warned of a tightening global market in 2012, with supplies moving into deficit after this year's record surplus drove prices too low.
Spot cocoa futures prices in New York and London surged 10% off their session lows after Gerry Manley, the head of Olam's cocoa division, told Reuters he expects world 2011/12 production to fall around 100,000 tonnes short of grindings.
'We think there's a likelihood the deficit could increase; the arrivals at the moment look good and we believe that's because of some carry over from last year,' he said, forecasting a dramatic drop in arrivals from January onwards.
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