Cocoa Market Report for July 2024
Abidjan, 16 August 2024 – The International Cocoa Organization releases the Cocoa Market Report for July 2024. The current report highlights the following insights:
- As the market enters the last quarter of the season, focus is on the developments of the forward prices for the mid-crop of the 2023/24 season: the JUL-24 and SEPT-24 contracts.
- Based on the JULY-24 contract, cocoa futures initiated an upward trend in prices during the first week of July. Compared to prices on the first trading day, prices rose by 5% from US$9,352 per tonne to US$9,823 per tonne in London and by 4% from US$7,500 per tonne to US$7,811 per tonne in New York. Issues of supply tightness and stock declines supported the price increase. A year ago, prices were not as high as they currently are.
- However, reports of improved weather conditions in Côte d’Ivoire and Ghana led prices to slip to US$9,143 per tonne and US$7,720 per tonne in London and New York, respectively.
- The dip was short-lived, and prices reversed in a volatile manner as high margin calls led traders to reduce their positions. At the time, open interest was reported to be near their lowest level since 2010. In addition, stronger-than-expected second quarter grindings data from Europe also supported the upward momentum in prices.
- From mid-July, the nearby contract shifted to the SEPT-24 contract. Prices remained high and volatile and ranged between US$8,131 per tonne and US$8,832 per tonne in London and in United States between US$7,660 per tonne and US$8,276 per tonne. The extent of the disappointing Côte d’Ivoire and Ghana crops, uncertainties surrounding demand and early predictions of a better crop outlook from top producing countries for the 2024/25 season contributed to the volatile price movements.
You can download the complete report by clicking here.
