Cocoa stock draw to support prices

Cocoa beans
Renée S. Suen / Foter / CC BY-NC-ND

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.

“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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Peter Sainsbury

Materials Risk provides commodity market insights across your supply chain by highlighting emerging risks and opportunities and providing advice on commodity buying and managing risk. All views expressed on this website are those of Materials Risk only. See our About page and terms and conditions for more details. Materials Risk was founded by Peter Sainsbury who you can follow on Google+ and Quora

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