Global cocoa hits multi-month high as West Africa drought and demand resilient

Published 2024년 12월 13일

Tridge summary

Cocoa futures prices are experiencing a surge on international exchanges due to adverse weather conditions in West Africa, the primary production region, and robust global demand. The prices are approaching their all-time highs, with significant increases observed on the New York and London exchanges. The drought in West Africa is causing concerns about production yields, exacerbating the already tight supply situation. Despite these challenges, demand for cocoa remains strong, as indicated by a rise in crushing activities in Ivory Coast, the world's second-largest cocoa producer. The complex mix of weather conditions, technical adjustments, and global economic factors is expected to keep pushing cocoa prices higher in the near future, impacting both the market and end consumers.

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

Original content

Cocoa futures prices continued to rise on international exchanges, driven by a combination of unfavorable weather in key producing regions and continued strong global demand. On the New York Stock Exchange (ICE), cocoa futures rose 1.1% to $10,942 per metric ton at 11:28 GMT on Friday (13). The contract is approaching its all-time high of $11,722 in April and earlier reached a seven-and-a-half-month peak of $11,010. In London, cocoa futures also rose 2% to £8,332 per ton. Although prices are still far from the record high of £9,980 reached in April, the movement reflects the upward trend in international markets. Dealers point out that weather conditions in West Africa, the main cocoa producing region, have been a key factor in the price increase. Prolonged drought in the region is putting pressure on production expectations, reducing the supply available on the global market. Despite this, demand for cocoa has not fallen significantly. In Ivory Coast, which rivals the Netherlands ...

Source: Mercado Do Cacau