Cocoa prices have moved backwards after it began to rain in West Africa, easing fears that the next harvest would be severely reduced.
One of the ingredient’s most active contracts dropped around 7% to US$9,850 a tonne in the US after it soared to record highs earlier this year.
In mid-April, prices rose to US$11,800 per tonne as suppliers suffered from shortages, while growers experienced reduced yields on the back of erratic weather, tree diseases and a lack of investment.
Analysts at Hightower said: “A shift towards wetter weather over West African growing areas should provide some benefit for the region’s upcoming production.”
Ghana, Ivory Coast, Nigeria and Cameroon account for around 75% of the world’s cocoa production but have been at risk of producing poor yields this year.
In March, cocoa prices surged leading chocolate makers such as Mondelez and Hershey to warn that it could affect their earnings.