January 27, 2009 - Cocoa futures in London broke through the £2,000 barrier for the first time in nearly 24 years towards the end of January, boosted by supply concerns in West Africa and a weak pound.
According to Reuters, May cocoa in London peaked at £2,004/tonne, the highest level for the benchmark second month since March 1985.
Dealers said the market was supported by investment fund buying and industry buying of forward months.
"There is a bit of fresh long buying from funds and also some short covering. There is certainly a big currency element in there today," one dealer told Reuters.
The market was also boosted by concerns about crop prospects in Côte d'Ivoire and Ghana, with a drop in production in West Africa likely to result in a third consecutive global supply deficit in 2008/09. March cocoa on ICE rose US$47 to US$2,627 a tonne.
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