Cocoa prices adjust in the US, while sugar and coffee rise

Published Sep 12, 2024

Tridge summary

All agricultural contracts are experiencing an uptick in prices in New York, except for cocoa which is undergoing a technical correction after a significant increase. The appreciation of the dollar is putting downward pressure on global agricultural prices. Factors such as diseases, aging crops, low investment, low government premium payments for cocoa, and adverse weather have contributed to the volatility in global prices. A decrease in cocoa production in Ivory Coast and potential certified stock shortages in consumer markets are exacerbating the pressure on global cocoa prices. However, a decision by Ghana's government to increase the price paid to cocoa producers by nearly 45% for the 2024/25 harvest could impact global supply. Meanwhile, concerns about coffee supply are driving prices up due to severe drought in Brazil's coffee-growing regions. Demerara sugar prices are increasing due to the depreciation of crude oil, which could lead sugar mills to divert more sugarcane to sugar production. Cotton prices are also on the rise, with the market awaiting the USDA's supply and demand report.

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

Original content

All agricultural contracts are rising this morning in New York, with the exception of cocoa, which is undergoing a technical correction after rising 6.29% in the last session. The price of December papers, the most traded, is now US$ 7,528 per ton, down 2.5%. According to Ricardo Gomes, territorial development manager at the Arapyaú Institute and a specialist in the almond, there is volatility in global prices due to the appreciation of the dollar, “which puts negative pressure on agricultural products, including cocoa”. Throughout the year, a scenario of diseases and aging of crops; low volume of investments in practices, improvements and renewal; low premium payments for cocoa by several governments and the adverse weather have been ‘weighing’ on global prices, with high and low peaks in the last six months. “Recent data from Ivory Coast (the world’s largest cocoa producer) indicate a significant drop in production. The arrivals at the beginning of September totaled a reduction ...

Source: Mercado Do Cacau