Price of Cocoa Rose 24% In 2013

It is estimated that in 2014 it will rise by another 14% due to growth in global demand, specifically generated in Asia.

Wednesday, December 18, 2013

An article by Bloomberg.com reports that "global cocoa stocks are on route to having the most prolonged deficit in more than 50 years as demand for chocolate soars in Asia."

Projections are that use of the grain will surpass production by about 70 thousand tons for 12 months from 1 October, and the deficit will remain until 2018. This is the longest period since records began in 1960, said the director of statistics from the International Cocoa Organization (ICCO) in London, Laurent Pipitone.

It is estimated that cocoa prices could soar by 14%, reaching $3,200 per tonne by the end of 2014, according to the median of 14 estimates of operators in the Bloomberg survey.

"The demand for chocolate is huge," said Ashmead Pringle, president of Greenhaven Commodity Services. "A significant amount of the world's population is rising to the middle class and they have more money to spend, particularly in Asia and emerging markets," he added.

This year prices experienced growth due to a drought in the Ivory Coast and Ghana, the largest producers of cocoa. "It is estimated that the fall in production in West Africa means that the deficit this year may exceed 100 thousand tons."



More on this topic

More Competition in the Cocoa Market

August 2014

This year Ecuador could surpass Brazil as the largest producer of cocoa in America, with an expected increase of 9% in production, estimated at 240 thousand tons.

Like other producers of the grain, Ecuador is taking advantage of the surge in global demand for chocolate, devoting more resources to the cocoa industry in the country.

Cocoa Prices Still Rising

July 2014

The grain was quoted on the commodities exchange in New York in the week of July 21st at $3,234 per ton, the highest value in the last three years.

Growing global demand, driven by the sustained increase in of chocolate consumption in Asia is the main trigger for the rising price of the grain in commodity exchanges around the world.

Excellent Prospects for Cocoa

July 2014

Projections are for a deficit of 1 million metric tons globally in 2020 due to the rapid growth in demand for chocolate in Asia.

The growth in demand for chocolate in Asia has made the future price of cocoa soar on the international market, which on July 3 reached $3,097 a tonne on the ICE futures market, the highest level since August 2011.

Global Demand for Cocoa Beans

May 2014

It is estimated that in Asia alone demand for the grain will increase between 5% and 9% in the next four to five years, opening up opportunities for high quality cocoa for america producers.

Encouraged by the deficit of about 175,000 tonnes in the last world harvest, the return of traditional consumers in Europe and the United States and increasing consumption in emerging countries, cocoa prices rose by 25% in 2013 and continued to rise in early 2014, reaching a cost per ton of £1,900 ($3.200 U.S. dollars) in London and more than $3,000 in New York.

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