Because of poor yields lately in producer countries like Ivory Coast, and a trend toward chocolate with a higher cocoa content, the global supply of cocoa has not kept up with demand. Chocolate prices in some markets are 40 percent or more higher than this time last year[…]Worldwide, though, analysts say the supply of chocolate cannot keep pace with people’s appetite, because of the cocoa shortage. Betting that prices will continue to rise, investors have been flocking to cocoa futures.
“Production isn’t rising, at least not as quickly as demand, so that’s a recipe for higher prices,” said Michaela Kuhl, an analyst at Commerzbank in Frankfurt. The market imbalance has driven cocoa prices up by 40 percent since the lows hit in the spring, she noted.
Please follow SGT Report on Twitter & help share the message.