Cocoa futures advance with supply concerns back in focus
Cocoa rose amid renewed concerns over the supply shortages that pushed prices to all-time highs in April.
New York futures climbed as much as 4.2% to $9,798 a ton on Thursday in New York. Prices have rebounded more than 40% from last month’s lows.
“We’re seeing a upward correction following the aggressive mid-April to mid-May selloff as the systemic crop concerns in West Africa remain a serious threat for future supply,” said Rabobank analyst Paul Joules.
Poor harvests in West Africa, the biggest cocoa growing region, pushed futures to record high of more than $11,700 a ton in New York in April. A mix of bad weather, disease and a shortage of fertilizer has put pressure on cocoa production in the two biggest exporters, Ivory Coast and Ghana.
Prices have eased since then, but some analysts expect them to remain high due to a global shortage of beans.
Cocoa stockpiles held in US ports also been declining, with the number of bags dropping to about 3.56 million as of June 5, the lowest since February 2021.
