Hershey’s chocolates are displayed on a store shelf in New York City on July 19, 2017. (Carlo Allegri/Reuters) Cocoa prices reached an all-time high in Feb. 5 trading, fueled by mounting global supply challenges and deficit fears, spelling trouble for investors with a sweet tooth.
Prices for cocoa surged by $53, or 1.02 percent, to a record $5,242 per metric ton on the U.S. ICE Futures exchange. Year-to-date, cocoa has rallied by nearly 25 percent and has soared by more than 103 percent over the past 12 months.
The previous record was in July 1977.
Cocoa futures are responding to increasing supply challenges in West Africa.Availability in the region remains “restricted,” and investors are weighing “another production deficit” against year-ahead demand, according to Jack Scoville, vice president of The PRICE Futures Group.“Traders are worried about another short production year, and these feelings have been enhanced by El Nino … threatening West Africa […]
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