Cocoa futures stayed above $8,500 per metric ton to finish the trading week as further supply concerns supported the agricultural commodity’s spike. Despite cocoa stalling this past summer, prices are looking to renew their rally heading into 2025.
March cocoa futures rose $29.00, or 0.34%, to $8,533.00 per metric ton at 16:23 GMT on Friday on the US ICE Futures exchange. Cocoa will register a weekly increase of 22%, lifting its year-to-date spike to above 103%.
Investors have been monitoring the political situation in Europe as the European Parliament voted to alter its deforestation regulations.
If officials fail to reach an agreement on rule changes, the new regulations will be imposed, potentially impacting a plethora of commodities, including cocoa. The measure would force companies to ensure that the products they produce are not manufactured in deforested areas after 2020.
Meanwhile, the fundamentals continue to support cocoa prices as global stockpiles continue to ease. In the United States, ICE-monitored ports declined to a two-decade low this week, falling below 1.67 million bags.
While growing conditions have improved in West Africa, one of the world’s large chocolate producers, Barry Callebaut, says regional crops are not producing the same amount of cocoa as during the 2022-2023 season.
Barchart recently reported that the Ivory Coast harvest “is picking up.” The financial hub reported: “Government data today showed that Ivory Coast farmers shipped 454,624 MT of cocoa to ports from October 1 to November 10, up +30% from 348,560 MT shipped the same time last year. The Ivory Coast is the world’s largest cocoa producer.”
Meanwhile, the United Nations’ Food and Agriculture Organization (FAO) published a biannual report that concluded costs associated with cocoa, coffee, and tea have bolstered the import bill to $2 trillion.
In other agricultural commodities, December corn futures added $0.035, or 0.84%, to $4.2275 per bushel. December wheat futures tacked on $0.0925, or 1.74%, to $5.395 a bushel. December soybean futures surged $0.135, or 1.37%, to $10.01 per bushel. March coffee futures advanced $0.04, or 1.43%, to $2.834 a pound.