Abidjan, 12 December 2023 – The International Cocoa Organization releases the Cocoa Market Report for November 2023. The current report highlights the following insights:
- Cocoa prices continued to extend their rallies in November due to supply tightness. By the end of the month the nearby contract prices reached US$4,522 per tonne in London and US$4,458 per tonne in New York. Compared to prices at the official start of the 2023/24 season in October, this reflects an increase of 23% and 27% in London and New York, respectively.
- Unconducive weather conditions in Côte d’Ivoire and Ghana have been the root cause for the current decline in supply. Heavy rains have affected farming activities, the spread of diseases and haulage operations in the two countries. As these two leading producing countries supply about two-thirds of global cocoa beans, any change in their production tends to have a significant impact on the cocoa market.
- Climate related challenges have consequences not only for producers but for consumers as well. Similar to high cocoa prices, confectionary manufacturers are also faced with other expenses such as surging cost of sugar. Prices of sugar have also increased due to weather events that led to declining production in key sugar producing countries.
- The high cost of key ingredients due to supply constraints will consequently raise production costs for chocolate manufacturers and eventually be reflected in the price rise of confectionery products.
- The deficit expected for the current season and previous years’ deficits have been caused by unconducive weather conditions. As the season progresses and more information becomes available, it will become clearer how supply, demand and prices will play out.
You can download the complete report by clicking here.