The chocolate crisis was canceled in Ukraine

Published 2024년 5월 3일

Tridge summary

Chocolate prices on world exchanges have dropped by 28%, a trend that is likely to benefit Ukrainians by preventing a sharp increase in chocolate prices. This drop follows a record high near $12,000 a tonne two weeks ago due to a severe supply shortage caused by a poor harvest in West Africa, a situation that had made cocoa more expensive than copper. The price surge has led to cash flow issues in the physical market, forcing traders to delay purchases. The recent price drop is attributed to trade maneuvers rather than a realignment of market fundamentals, with recent rainfall in West Africa potentially impacting prices. The liberalization of transportation from the EU has also increased the activity of Ukrainian exporters, further contributing to the situation.

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

Original content

This week, chocolate prices on world exchanges fell by 28%, and if this trend continues, Ukrainians will be able to avoid a sharp increase in the price of chocolate. This is reported by Bloomberg. Just two weeks ago, the most active contract hit a record near $12,000 a tonne as the industry grappled with the effects of a severe supply shortage. But this week's drop sent futures about 40% below an all-time high — accompanied by extreme price swings after an outflow of traders cut liquidity. The pullback marked a sharp turnaround for cocoa, which has become more expensive than copper. Prices have soared due to a poor harvest in West Africa, sending the world into a third year of shortages, stressing buyers and making chocolate more expensive. A cash crunch is hitting the physical market, forcing traders to delay purchases from leading manufacturers. More volatility means they need to invest more money to cover their margin requirements. The recent decline in cocoa prices is ...

Source: Agropolit