News

Cocoa on ICE UK advances 14% in the week and approaches 10 thousand pounds/t

Cocoa Bean
Cocoa Products
United Kingdom
United States
Market & Price Trends
Published Apr 20, 2024

Tridge summary

Cocoa futures in London's ICE have experienced a significant surge, rising 14% over the week to near record highs of 10,000 pounds per metric ton, driven by strong demand and higher than expected cocoa processing rates across North America, Europe, and Asia. Despite the price tripling in the past seven months and the market's anticipation of a fourth consecutive deficit next season, farmers in Côte d'Ivoire and Ghana, who account for 65% of global cocoa production, may not benefit from these high prices for another 18 months due to government marketing practices, potentially affecting their ability to invest in crop production.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

NEW YORK (Reuters) - Cocoa futures on London's ICE rose 14% on the week, reaching record peaks close to 10,000 pounds per metric ton on Friday, as this year's rise accelerates, with the latest increase it is linked to signs that demand remains strong despite rising prices. COCOA * London cocoa closed up 417 pounds, or 4.4%, at 9,835 pounds per tonne, having risen 9.7% on Thursday. The contract previously reached a high of 9,980 pounds per ton. * Data showed that cocoa processing in North America increased 3.6% in the first quarter from a year earlier, much more than market estimates of a decline of 4% to 8%. * First-quarter cocoa processing in Europe and Asia was also stronger than expected, the data showed. * Cocoa prices have tripled in the past seven months, and supply chain and trading services company Czarnikow said prices are likely to remain high for about a year and a half, with the market talking of a fourth consecutive deficit in next season. * The company noted that ...
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