Olam sees further rise in cocoa prices next year

Singapore

COCOA prices will probably advance for a fourth consecutive year in 2015, driven by a global shortage, according to Olam International Ltd.

Demand will exceed supply by 120,000 tonnes in the season that started on Oct 1 because of lower output in West Africa, the world's biggest growing region, Gerard Manley, global head of cocoa at Olam, said in an interview. That follows a balanced market the previous year, he said. The company agreed this week to buy Archer-Daniels-Midland Co's cocoa business for US$1.3 billion to become a top-three processor of beans.