Global: Cocoa soars above US$12,000 to reach fresh record on supply fears

Published 2024년 12월 18일

Tridge summary

Cocoa futures have reached a record high of over $12,000 a tonne in New York, driven by concerns about a predicted reduction in cocoa output in Ivory Coast, the world's largest producer. The most-active contract has seen a significant increase of 3.4% to $12,163 a tonne, with prices in London also surging by over 3%. This price hike is due to poor harvests in West Africa and the depletion of stockpiles. The expected production in Ivory Coast for the 2024-25 season is now around 1.9 million tonnes, a nearly 10% decrease from initial government projections, causing further supply concerns. Low exchange liquidity may be exacerbating the price volatility.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(Dec 18): Cocoa futures climbed above US$12,000 (RM53,616) a tonne in New York, reaching a fresh record amid mounting worries over reduced output in top grower Ivory Coast. The most-active contract rose as much 3.4% to US$12,163 a tonne. Futures have almost tripled this year as poor harvests in West Africa contributed to the worst deficit ever and forced companies to draw down from stockpiles. Prices in London also rallied more than 3%. Fears over a weaker than expected crop in Ivory Coast in the current season have renewed supply concerns. Production in the country, which accounts for more than a third of global production, is expected at 1.9 million tonnes in the 2024-25 season, according to an average of eight analyst and trader estimates compiled by Bloomberg. That’s down nearly 10% from a government outlook of about 2.1 to 2.2 million tonnes ...

Source: Theedgemarkets