2023-06-29 08:05:47
Cocoa prices jumped to their highest levels in 46 years on the Intercontinental Stock Exchange in London, as bad weather in West Africa threatens production prospects for the main producers of the basic ingredient in making chocolate.
The record September contract for cocoa in London rose more than 2 percent on Wednesday to 2,590 pounds ($ 3,274) a tonne. It reached a session high of 2,594 pounds, its highest since 1977.
Prices are rising due to a lack of supply in the market for cocoa beans, most of which are produced in Ivory Coast and Ghana. The volume of cocoa shipments entering Côte d’Ivoire’s ports for export has fallen regarding five percent this season, according to Archyde.com.
The International Cocoa Organization this month raised its forecast for a shortfall in global cocoa supplies from regarding 60,000 tons to 142,000.
“This is the second consecutive season of supply shortages,” said Leonardo Rossetti, an analyst at StoneX brokerage.
He added that the inventory-to-consumption ratio, an indicator of the availability of cocoa in the market, is expected to fall to 32.2 percent, its lowest level since the 1984/85 season.
More than average rains in Ivory Coast led to the flooding of some cocoa fields, which might harm the main crop, which begins next October.
Cocoa prices also rose in New York, with the September contract rising 2.7 percent to $3,348 a ton, its highest in seven and a half years.
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