Global cocoa prices rose back above $10,000 a tonne on Thursday, heading towards year-long highs, as the chocolate industry’s supply crisis deepened after major producer , Ivory Coast, has interrupted its exports of beans for the month of June and its forward sales for next season.
The news came a day after Ghana, the world’s second-largest producer of the chocolate ingredient, considered delaying the delivery of 350,000 tonnes of beans for next season due to poor harvests.
The price of cocoa has more than doubled this year and is now more expensive than many metals. September cocoa futures in New York hit a peak six weeks earlier at $10,308 a tonne and settled 2.6% higher at $10,110 a tonne.
“Ivory Coast and Ghana have a harvest 30% lower than last year. Nobody knows how to compensate for the missing cocoa, there are not enough beans in the short term to supply the market” , said a trader.
Sources told Reuters that Ivory Coast had suspended the purchase and export of cocoa for the month of June to maintain sufficient stocks for local processors who no longer have enough beans to operate their operations. factories.
They added that the ban could be extended beyond June and that it covered multinationals such as Cargill, Barry Callebaut, CEMOI and Olam, meaning that European factories waiting for Ivorian beans will have to turn to other sources of supply.
The world’s largest cocoa producer also halted forward sales of next season’s harvest, which amounts to 940,000 tonnes, 35% less than a year ago, in anticipation of more clarity on planned production.
The current season’s production shortfall has led Ivory Coast to oversell the 2023/24 main harvest from October to March, forcing it to renew contracts for 150,000 tonnes of beans in the current intermediate harvest.
Ghana is also struggling with forward sales as it seeks to carry over 350,000 tonnes of beans amid uncertain harvest prospects. Sources told Reuters it had only sold 100,000 tonnes forward for 2024/25.
The country regularly sells about 80% of its harvest, which typically amounts to 750,000-850,000 tonnes, a year in advance, but its current harvest is not expected to exceed 500,000 tonnes and traders fear it will rebound not significantly next season.
September cocoa in London hit a six-week high of 8,299 pounds per tonne and was up 3.8% at 8,222 pounds per tonne.
In other commodities, July raw sugar was up 2.8% at 1650 GMT at 19.64 cents a pound, while August white sugar was up 2.3% at 567.80 $ per ton.
September robusta coffee settled up 0.2% at $4,093 per tonne, while September arabica coffee settled up 0.6% at $2.2625 per pound (reported by Maytaal Angel; edited by David Evans).
