Cocoa Market Report for March 2024
Abidjan, 18 April 2024 – The International Cocoa Organization releases the Cocoa Market Report for March 2024. The current report highlights the following insights:
- Significant decline in production from the two leading producers i.e., Côte d’Ivoire and Ghana has led prices to rally unabated.
- With prices at US$7,109 at the start of March 2024, by the end of the month, the nearby contract in London increased by 47% to US$10,455 per tonne while in New York it rose by 44% from US$6,769 per tonne to US$9,729 per tonne.
- The current backwardation structure of the cocoa market continues to underscore the supply challenges and consequent high prices.
- While Ghana’s production deficit appears to be structural in nature due to a combination of negative events: the large number of cocoa trees infected with deadly swollen shoot virus disease; illegal mining, which has reduced the number of cocoa farms; ageing trees and unfavourable weather conditions.
- In Côte d’Ivoire, production shortfall appears to be an isolated short-term event at least for the time being but some recent reports indicate that 25% to 30% of Ivorian farms are infected by CSSVD.
- With not much change in the fundamentals for the current season, the 2024/25 season will now be the focus on how prices and the balance sheet will evolve.
You can download the complete report by clicking here.
