Cocoa futures in New York hit a new record as processing rates at chocolate factories continue despite global supply shortages and high prices. Bloomberg reports this.
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The most active contract increased by 5% and reached an all-time high of $11,578 per metric ton at the start of trading on Friday, April 19.
Data released Thursday after the market closed showed that so-called polishing, where cocoa is turned into butter and powder used in confectionery, rose nearly 4% in North America in the first quarter compared with the same period a year. back.
Recycling in Europe fell only by about 2%, and in Asia even less. These data come as cocoa futures prices have more than doubled since the beginning of 2024.
The reason for the increase
According to Bloomberg, cocoa tree plantings in Nigeria and harvesting in mid-year are in danger of collapse. The Nigeria Hydrological Service Agency has warned of severe flooding in the country's main cocoa growing areas, the newspaper writes.
“Flood-prone areas in Nigeria include Ondo, Cross River, Osun, Oyo, Ogun, Taraba and Delta.” , Nigeria's Minister of Water Resources and Sanitation Joseph Utsev said on Wednesday. These areas account for 94% of the country's cocoa production.
The West African country, the world's fifth-largest cocoa producer, is expected to drop to 225,000 tonnes in 2024, down from a previous forecast of 280,000 tonnes. thousand – 300 thousand tons. The Nigerian Cocoa Producers Association reported this in February.
Recall
The Ministry of Finance wrote that in March 2024, prices for cocoa beans exceeded $10 thousand per ton. Then it was a new record.