Cocoa futures are expected to rise this week with the threat of drought in West Africa affecting next season's production.

Cocoa futures are heading higher this week, as dry weather threatens next season's production in West Africa, potentially exacerbating the already tight global supply. The most active contract traded in London rose 1.3% to 5,264 per ton at one point. It has risen around 1.7% this week, bouncing back from a low point of over a month ago. Data from the African Flood and Drought Monitoring Agency shows that despite recent rainfall, nearly one-third of the regions in the world's largest cocoa-producing country, Ivory Coast, are still experiencing drought conditions. More than half of the regions in Ghana are also facing dry weather. The Hamburg-based trading firm Hanseatic Cocoa & Commodity Office stated in a report, "Continued adverse weather conditions and the ongoing lack of rainfall in West Africa suggest that the upcoming main crop is likely to perform quite poorly."