The cocoa rally explained
About this episode
This episode discusses the factors contributing to the unprecedented cocoa price rally driven by systemic production issues in West Africa.
The cocoa rally shows no signs of slowing, with the London March24 contract up 58% YTD. Meanwhile, the New York contract set a new all-time high in the first half of February, surpassing, in nominal terms, the previous record set in 1977. Since then, prices have moved 20% higher! In this podcast, we discuss the factors contributing to this unprecedented price rally. In our view, recent price action is fundamentally driven by systemic production issues in West Africa that have led to an enormous supply deficit, the third in a row. Current market dynamics are incomparable to prior seasons, thus creating enormous panic among market participants. Please read our disclaimer here: https://www.rabobank.com/knowledge/disclaimer/011417272/disclaimer
People in this episode
Host: Rabobank RaboResearch Food & Agribusiness
Topics covered
- cocoa market
- price rally
- West Africa production
- supply deficit
- market dynamics
Keywords
- cocoa
- price rally
- West Africa
- supply deficit
- market dynamics
- contract
- record high
Mentioned in this episode
Organizations: Rabobank RaboResearch Food & Agribusiness
Places: West Africa
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