LONDON: New York cocoa futures traded lower on Tuesday but were set to be the strongest performing commodity in 2024, driven by poor crops in Africa that account for about 70% of production.

Coffee prices have also risen strongly this year but sugar futures were set to post an annual loss.

New York cocoa futures on ICE fell 0.5% to $11,445 a metric ton by 1524 GMT. The market, which hit a record high of $12,931 a ton on Dec. 18, is on track for an annual gain of 173% after a second successive year of soaring prices.

Prices had risen by 61% in 2023.

Number two grower Ghana has had a particularly difficult time due to soaring rates of swollen shoot disease, ageing trees, illegal gold mining, climate change and sector mismanagement.

The International Cocoa Organization has estimated there was a third consecutive global deficit in the 2023/24 season (October/September).

As dry weather dents the outlook for crops in the current season, concerns have also mounted of another shortfall in 2024/25.

London cocoa futures rose 0.2% to 9,135 pounds a ton and were on course for an annual gain of 161%.

Coffee prices have also risen this year, buoyed by adverse weather in producing countries, particularly the top two growers, Brazil and Vietnam.

Dry weather in Brazil led to a smaller-than-expected crop this year and is also expected to curb production next year.

Arabica coffee futures were down 1.6% at $3.1185 per lb on Tuesday, although they were on track for an annual gain of 67%. Prices rose to a record high of $3.4835 on Dec. 10.

Robusta coffee fell 1% to $4,871 a ton but was on course for an annual gain of 71%.

Sugar is set to post an annual loss, weighed down by ample global supplies following global surpluses in both the 2022/23 and 2023/24 seasons.

Raw sugar rose 0.4% to 19.19 cents per lb but was on track for an annual loss of 7%.

White sugar rose 0.3% to $504.80 a ton and was heading for an annual loss of 15%.