Global cocoa market rising; prices rise despite demand concerns

The cocoa market has shown significant volatility in recent days. The London LCCc2 cocoa contract for September rose 3% this Wednesday, reaching 6,670 pounds per tonne. This increase follows the 5% gains seen on Tuesday, following a 3% drop on Monday. Industry experts say near-record cocoa prices are raising concerns among chocolate makers. There is an expectation that these high prices will result in a sharp drop in demand as consumers may opt for cheaper alternatives or reduce their consumption of chocolate products. Dealers highlight that the number of open cocoa contracts is close to its lowest level since the beginning of the year. This low liquidity has contributed to cocoa trading in an extremely wide range, making the market more volatile. However, prices have settled below this year's record highs, reflecting an improvement in weather conditions in West Africa's main cocoa-producing region. New York CCc2 cocoa for September also showed a significant increase, rising 2.7% ...