COCOA has turned out to be a sweet treat for investors this year, but companies and consumers are reeling from the price surge even as market watchers warn that the commodity might be the latest to see prices remain higher for longer.
Supply concerns have caused cocoa futures in both the New York and London markets to rise this year, touching new record high levels.
Year to date, London cocoa futures are up 125.6 per cent as at Singapore market close on Apr 4, while cocoa futures in New York have risen 129.4 per cent. Over the past year, futures on the two exchanges have surged 275 per cent and 243.1 per cent, respectively.
According to a February report from the International Cocoa Organization (ICCO), high cocoa prices remain a “significant concern” due to a supply shortfall from Ivory Coast and Ghana – two of the largest cocoa bean-growing countries whi…
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