World: Ton of cocoa exceeds US$10,000 and increases pressure on chocolate prices

Cocoa futures have soared above an unprecedented $10,000 per ton, extending a historic rally that has already seen prices double this year and is driving up the cost of chocolate. The market is rocked by weak harvests in key West African producing countries, which has put the world on track for a third consecutive annual supply deficit. The industry is grappling with the legacy of low returns paid to cocoa farmers, and fears are growing about the ability to obtain sufficient quantities of beans. In addition to concerns about scarce physical supplies, pressures are also building in the financial market, and some traders have sold futures contracts to hedge physical positions. But as they wait for contracts to expire, they need cash to meet margin calls for losses on derivatives, and in a bull market they may be forced to liquidate short positions, helping to fuel the rally. Cocoa rises to record above US$ 10 thousand | Futures Soared Due to Global Shortages(ICE Futures US) Futures ...