The Strategist

Cocoa bean prices hit highest since 1977

02/05/2024 - 02:21

According to MarketWatch, cocoa bean prices increased for the sixth straight session on Friday and are expected to reach their highest point in over 46 years.

Jack Scoville, vice president of The Price Futures Group says that "cocoa bean supply from West Africa remains tight and expectations that production will fall below demand are increasing."

On the US ICE floor, March cocoa bean futures increased 1% to $5006 per ton during trading on Friday.

Dow Jones data show that the price of the contracts was $4956 per ton on Thursday at market close, the highest since July 20, 1977.

January had a 15% increase in cocoa beans, the biggest increase since November 2020.

The harvest of cocoa beans is not as high as it was in the previous crop year, according to a report by Commerzbank.

Exporters estimates show that between the beginning of the crop year in October and the end of January, exports of cocoa beans to ports in Côte d'Ivoire, the top producer of the commodity in the world, decreased by 35% as compared to the same period the previous year, Commerzbank reported.

According to the bank's specialists, this indicates that the market for cocoa beans will have a deficit for the third year in a row.