Cocoa prices head near record

LONDON, Dec 18 (Reuters): Cocoa prices rallied on Wednesday, heading towards April's record peak as the market continues to fear that dry weather in West Africa will result in a fourth consecutive deficit this season.

COCOA

New York cocoa futures on ICE rose 3.5 per cent to $12,182 a ton, nearing April's record peak of $12,261.

Dealers said the weather outlook in West Africa, albeit improved over last season, is a concern given how tight the market is after three seasons of deficit.

They added investors were again taking on new long futures positions or bets on price gains.

Farmers in most of top producer Ivory Coast said on Monday the lack of adequate rains and heat could weigh on the development of the October-to-March main crop.

London cocoa rose 3.5 per cent to 9,588 pounds per ton, nearing April's record peak of 10,265.