(Feb 26): Cocoa’s rally shows no sign of slowing, with prices surging to a fresh record in New York on mounting fears about supply shortages.

Futures climbed as much as 4.6% on Monday, after capping the biggest weekly jump since 1999. Prices have soared as drought and disease ravaged crops in key West African producers, threatening to raise costs for chocolate makers that risk being passed on to consumers.

There are persistent signs of tightening supplies from key exporters. Bean arrivals at ports for shipment in top grower Ivory Coast are running about a third behind last year’s pace, while Nigerian exports were down in January.

“West African production issues have the cocoa market looking at a sizeable global production deficit this season that continues to fuel cocoa’s upsurge,” The Hightower Report said late Friday.

The International Cocoa Organization said that supply concerns could further deepen as enforcement of European Union regulations on deforestation nears.

Prices

• Cocoa rose 3.4% to US$6,470 a ton in New York. London cocoa gained 3.5%.
• Raw sugar advanced, while arabica coffee edged up.