Goldman Sachs sees little further upside risk in the short term to cocoa prices (they are up almost 20% since the end of June as poor rainfall suppressed pod development) due to “…the still high cocoa stocks-to-use ratio”.
According to the bank cocoa prices are likely to remain high through 2014.
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“With cocoa grind posting strong growth across regions, 2013-14 will likely feature a second consecutive draw on global inventories and support cocoa prices.”
Related article: Chocolate about to get more expensive as drought spurs milk price hike
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