Cocoa Prices Surge on Tight Supplies, Weak Demand

Cocoa prices surged today, with March New York cocoa futures climbing nearly 5% and London cocoa jumping over 6%. This bullish trend is driven by expected buying as cocoa joins the Bloomberg Commodity Index in January, potentially adding up to $2 billion in new demand for New York contracts. US port inventories also hit a nine-and-a-half-month low, contributing to the positive outlook. However, favorable weather conditions in Ivory Coast and Ghana may boost future supplies and cap the rally. Global supply outlooks have tightened, with the International Cocoa Organization slashing its surplus forecast and Rabobank following suit. Demand remains soft, with third-quarter grindings plunging in Asia and Europe, and North America seeing only a slight uptick. Nigeria, the worlds fifth-biggest producer, expects an 11% production drop next year, adding to concerns about tight supplies against weaker demand. Checkout Solipillow.comThe Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.