On Friday, cocoa prices jumped sharply following adverse weather conditions in West African countries, underscoring gains.
US cocoa futures for March delivery ascended by 5.21% to $9,085.00 per metric ton (MT) on November 22’s Asian afternoon session.
More specifically, the New York contracts registered a two-and-a-half-month peak, while London futures posted a four-and-a-quarter month top.
According to reports, the cost of the commodity rose after the impact of recent heavy shower activities on the Ivory Coast. Correspondingly, the extreme rains in the region induced high mortality rates of cocoa buds on trees, driving a rally.
In line with this, the unfavorable climate in Yamoussoukro continues to support the prices of the bean. The strong downpours in the country prompted flooding in fields, which heightened the risks of disease and poor crop quality.
At the same time, the recent cocoa harvest in the Ivory Coast showed signs of lower quality, with approximately 105 beans per 100.00 grams. Subsequently, its regulator permits exporters to purchase bean counts ranging from 80 to 100 per 100.00 grams.
Moreover, declining global stockpiles of chocolate’s main ingredient are rendering bullish sentiments for prices. Meanwhile, ICE-monitored reserves in the US ports diminished to 1.60 million bags, dropping to a 19-year low.
Kruidnoten Benefits from Steep Cocoa Prices
Based on reports, traditional Dutch sweet kruidnoten is gaining benefits amid the quick growth of cocoa prices. Commonly, the hard cookie-like confectioneries are said to be available only in the winter months.
According to commercial director Geert-Jan Zandbergen, Bolletje recorded a moderate increase of 10.00% to 15.00% in the chocolate version, lower than the traditional variety.
He attributed the advancement to the rising cost of the ingredient due to the dismal cocoa output in the Ivory Coast and Ghana. Zandbergen also added that the chocolate segment of kruidnoten is stumbling and is expected to keep facing challenges next year.
