London cocoa futures have hit a 23-year-high as cocoa turned out to be the most lucrative commodity in 2008. Cocoa for delivery in May peaked at £1,820 per tonne in London, which was its highest price since October 1985. Cocoa traded in the US has also been rising, although not as strongly because of the strength of the dollar.Most commodities are priced in dollars, even in London trading, but London cocoa is priced in sterling, meaning traders can benefit from the weaker currency. There are concerns about falling cocoa production in Africa, while demand for cocoa is holding up much better than other commodities in the downturn. The three largest producers of cocoa are Côte d’Ivoire, Ghana and Indonesia. Between them they account for over 70% of global production.
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