World: Ton of cocoa exceeds US$10,000 and increases pressure on chocolate prices

Published 2024년 3월 27일

Tridge summary

Cocoa futures have soared to a record high, exceeding $10,000 per ton due to a historic rally fueled by poor harvests in West Africa, leading to a third consecutive year of supply deficit. This price surge is pushing up chocolate costs and sparking concerns over cocoa bean availability. The situation is aggravated by financial market pressures, margin calls, and new EU regulations aimed at preventing forest destruction, potentially further restricting supplies. Despite efforts to boost production elsewhere, the impact is delayed as cocoa trees take years to mature. This has resulted in the lowest stocks-to-grinding ratio in over 40 years, highlighting a critical market condition.

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

Original content

Cocoa futures have soared above an unprecedented $10,000 per ton, extending a historic rally that has already seen prices double this year and is driving up the cost of chocolate. The market is rocked by weak harvests in key West African producing countries, which has put the world on track for a third consecutive annual supply deficit. The industry is grappling with the legacy of low returns paid to cocoa farmers, and fears are growing about the ability to obtain sufficient quantities of beans. In addition to concerns about scarce physical supplies, pressures are also building in the financial market, and some traders have sold futures contracts to hedge physical positions. But as they wait for contracts to expire, they need cash to meet margin calls for losses on derivatives, and in a bull market they may be forced to liquidate short positions, helping to fuel the rally. Cocoa rises to record above US$ 10 thousand | Futures Soared Due to Global Shortages(ICE Futures US) Futures ...

Source: Mercado Do Cacau