LONDON: New York cocoa futures on ICE steadied off recent 12-year peaks on Thursday but headed for gains of 4% this week as concerns over supplies persist.

COCOA

September New York cocoa rose 0.8% to $3,556 a metric ton at 1041 GMT, having clocked its highest since 2011 at $3,602/ton on Thursday.

Cocoa has been boosted of late by excess rains that have caused black pod disease outbreaks in top producer Ivory Coast, and worries the market is heading into a third successive deficit thanks to the El Nino weather phenomenon.

Dealers cited a stronger U.S. dollar as holding back cocoa’s gains, for now.

On the demand front, Mondelez raised its full-year growth forecasts for the second time this year, helped by robust demand for the Oreo maker’s snacks and chocolates despite several rounds of price increases.

Hershey raised its full-year adjusted profit forecast, bolstered by price increases for the firm’s chocolates and candy even as demand starts to falter.