Global cocoa prices remain near all-time highs, driven by weather factors and low stocks

By: Claudemir Zafalon Cocoa futures contracts due in March fell 1% this Thursday, trading at US$ 10,471 per ton, compared to the previous close. Despite the slight decline, the price of the commodity remains close to historical highs, supported by climate uncertainty and stocks at critical levels. The price hike reflects market volatility, driven by low liquidity and uncertainties regarding the quality and size of the African harvest. Ivory Coast and Ghana, responsible for the majority of global production, faced adverse weather conditions, such as periods of drought, which compromised the harvest. Another factor putting pressure on the market is the low level of certified stocks in ICE general warehouses in the US, which currently total 1,446,597 bags, the lowest volume in 20 years. This scenario aggravates the perception of risk of shortage in the global market. Recent data from exporters association GEPEX highlights that cocoa crushing in Côte d’Ivoire increased by 16.1% in ...