Cocoa Market Report for June 2024
Abidjan, 14 July 2024 – The International Cocoa Organization releases the Cocoa Market Report for June 2024. The current report highlights the following insights:
- At the start of the month under review, the cocoa market did not appear to be looking past the period of supply tightness and price rallies. Several price swings occurred in the first half of June as both Côte d’Ivoire and Ghana postponed deliveries of cocoa beans until next season due to poor crops resulting from unconducive weather conditions and Cocoa Swollen Shoot Virus Disease (CSSVD).
- Despite the current shortage of beans, from mid-June till the end of the month, prices pulled back and broke out of their rallies. The driving force behind the softening in prices may have come from reports of conducive weather conditions supporting crop development and the consequent anticipation of a better main crop output for the upcoming 2024/25 cocoa season.
- Observations derived from the price declines may also be due to traders taking a short position to sell more now and buy these contracts later at a lower price. Another observation during this period was the backwardation that occurred while prices were declining. Though the supply tightness is felt in both London and New York, the magnitude can be said to be more significant in London than New York especially considering that most of the cocoa from West Africa is destined for Europe, and with less cocoa in West Africa, this can impact the volume in London. Nevertheless, outside West Africa, production and consequently exports from countries in the Americas, like Ecuador among others, have been increasing.
You can download the complete report by clicking here.
