Cocoa Hits 20-Month Low With Funds More Bearish on Better Supply

Cocoa futures hit a 20-month low in London, with hedge funds turning more bearish as the global supply picture improves.

Futures have halved since December — when they peaked on the back of poor harvests that rattled the market — on expectation of better production and waning demand. Supply prospects have also been boosted recently by top growers Ivory Coast and Ghana raising prices, a move that could encourage farmers to accelerate sales and invest in crop inputs.