Cocoa Prices Hit Upward Slope

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The prices of cocoa could go up by the end of the 2017-18 cocoa season due to some developments in the international market.

Reports suggest that the price could increase to $2,200 per ton on New York futures exchange (ICE) and £1,550 on British futures market (LIFFE). This would represent increases by 16% and 11% respectively, compared to the price during 2016-2017 cocoa season

The good performance should stem from a decrease in global surplus to 100,000 tons this season against 335,000 tons a year before, due to decline in the global supply.

Some traders and analysts, Côte d’Ivoire should produce 1.95 million tons this year against 2 million tons in 2016-17 while Ghana will produce 870,000 tons of the bean, 100,000 tons less than the volume during the previous season.

Meanwhile, the need for manufacturing industries could maintain the growing momentum initiated in Q4, 2017, when grinding in Europe rose by 4.4% on a year-to-year basis.

According to the International Cocoa Organization (ICCO), at the peak of the overproduction crisis during the 2016-17 season, the average daily price per ton of cocoa in April was £1,438 in London, the lowest cost in 4 years, and $1,810 in New York, a level not reached since 9 years

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