🔹 Prices on Feb. 6th 2024 for cocoa futures in NY climbed 📈 to a new 46-year nearest-futures high and in London climbed to a record high, trading in the $5,279 per ton range. Cocoa prices are surging as the intensity of this year's seasonal Harmattan winds in West Africa is drying out cocoa fields and is sparking worries about damage to the Ivory Coast mid-crop.
🔹 Cocoa futures are at their highest since 1977, when then scarcity in the producing nations were caused by adverse weather conditions. Presently, Lower cocoa production in Côte d'Ivoire 🇨🇮 and Ghana, the world's largest producers, is a major bullish factor for cocoa prices. Unfavorable growing conditions and crop disease on West African farms over the past year have curbed cocoa production and fueled a scorching rally in cocoa prices.
🔹Over 500,000 hectares of cocoa farms in Ghana 🇬🇭have been lost to the Cocoa Swollen Shoot Viral Disease, posing a major threat to the country’s cocoa production. In Ghana, farmers don't get their fair share of profits because cocoa beans are not sold at the true market value.
🔹Last July, we reported that delegates from Ghana, Côte d'Ivoire, Nigeria 🇳🇬, Cameroon 🇨🇲and multinational cocoa industry players are reviewing a feasibility study on establishing an African Cocoa Exchange. The continent produces 75% of world cocoa and does not have a pricing platform as it relies on the price determined on the Chicago Mercantile 🇺🇸 and the London 🇬🇧Intercontinental Cocoa Exchanges.
🔹 Cocoa futures are at their highest since 1977, when then scarcity in the producing nations were caused by adverse weather conditions. Presently, Lower cocoa production in Côte d'Ivoire 🇨🇮 and Ghana, the world's largest producers, is a major bullish factor for cocoa prices. Unfavorable growing conditions and crop disease on West African farms over the past year have curbed cocoa production and fueled a scorching rally in cocoa prices.
🔹Over 500,000 hectares of cocoa farms in Ghana 🇬🇭have been lost to the Cocoa Swollen Shoot Viral Disease, posing a major threat to the country’s cocoa production. In Ghana, farmers don't get their fair share of profits because cocoa beans are not sold at the true market value.
🔹Last July, we reported that delegates from Ghana, Côte d'Ivoire, Nigeria 🇳🇬, Cameroon 🇨🇲and multinational cocoa industry players are reviewing a feasibility study on establishing an African Cocoa Exchange. The continent produces 75% of world cocoa and does not have a pricing platform as it relies on the price determined on the Chicago Mercantile 🇺🇸 and the London 🇬🇧Intercontinental Cocoa Exchanges.