USA: Cocoa reacts on the New York Stock Exchange after a sharp drop

Published 2024년 10월 17일

Tridge summary

The cocoa market experienced a rebound on Thursday, with contracts for December increasing by 1.47% to $7,879 per ton, following a nearly 3% drop the previous session that fell short of $8,000 per ton. This volatility is attributed to profit-taking by investors, despite the medium-term support from adverse weather conditions in West Africa, which have curtailed cocoa production. However, this recovery is capped by diminished demand from the chocolate industry, faced with global inflation and shifting consumer preferences. In the days ahead, the market's stability will hinge on weather updates and indicators from the industrial sector, highlighting the delicate balance between supply and demand in the cocoa market.

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

Original content

After a negative day, the cocoa market opened higher on Thursday morning (17) on the New York Stock Exchange. Contracts due in December appreciated by 1.47%, trading at US$ 7,879 per ton. This recovery occurs after the asset closed down almost 3% in the previous session, when it broke the symbolic mark of US$ 8,000 per ton. The market reaction reflects profit-taking by investors, according to analysts, within an expected dynamic of volatility. Although prices fell yesterday, there are structural factors that still support the value of cocoa in the medium term. Among them, the impact of unfavorable weather on the crops of African producers, mainly in Ivory Coast and Ghana, the two largest global exporters, stands out. Irregular rainfall and the increase in diseases on plantations limited the available supply, putting pressure on prices in recent weeks. On the other hand, price recovery is limited by weaker demand from the chocolate industry, typical for this time of year. Chocolate ...

Source: Mercado Do Cacau