World cocoa and coffee prices hit record highs

Published 2024년 12월 11일

Tridge summary

Cocoa and coffee prices have reached a 7-month and record high, respectively, due to concerns over production in West Africa and Brazil, the primary cocoa and Arabica coffee producing countries. Adverse weather conditions, including the Harmattan season and drought, have damaged crops, exacerbated by already low global inventory levels. This situation has led to significant increases in prices, with cocoa futures rising by 6.1% to $10,454 a tonne and Arabica coffee futures increasing by 4% to $3.434 a pound. The severe drought in Brazil is expected to further reduce coffee production, potentially leading to a global shortage of 8.5 million bags in the 2025/26 season, continuing a trend of supply challenges.

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

Original content

Cocoa prices hit a 7-month high Cocoa futures hit their highest level in seven months as the outlook for cocoa production in West Africa worsens, putting global supplies at risk at a time of historically low inventories. This is reported by Bloomberg. The most active contract rose 6.1% to $10,454 a tonne, its highest since April 29. Futures returned to highs reached earlier this year after adverse weather conditions in Cote d'Ivoire and Ghana, the largest cocoa producers. Key growing regions in West Africa have entered the seasonal Harmattan (atmospheric phenomenon in West Africa), which can dry out the soil and damage crops. According to the forecasts of forecaster Maxar Technologies Inc., the decrease in soil moisture and the minimum amount of rain will not contribute to the growth of the crop in the middle of the year. While arrivals of cocoa beans at the ports of Ivory Coast, the biggest producer, are ahead of last year's pace, analysts at ADM Investor Services estimated that ...

Source: Agroconf