Cocoa prices could remain high until 2026

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The price of cocoa (CC=F) is still trading over 128% compared to a year ago due to increased weather incidents and crop disease which have led to supply shortages. Saxo Bank head of commodity strategy Ole Hansen joins Catalysts to give insight into the rise of cocoa prices, recent supply chain issues, and more. Hansen points out how the high prices themselves hasn't fully incentivized production booms: "So far we haven't really seen those structures really unfold because the producers in question here is primarily in West Africa. And it does take time for the economics, the farm gate prices to raise to levels where they can increase production. At the same time, it looks like global demand remains fairly robust." Hansen explains why prices may be out of control for some time, as far ahead as 2026 possibly. "AAnd that really is a combination of two things: first and foremost, that the farmers are receiving more for their product. They can spend more money on fertilizers and also pesticides, which is a key right now due to some diseases they have in some of the crops. But also that we see the weather continue to improve...." About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life. - Get the latest news and data at finance.yahoo.com - Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android

Published 2024-08-28 · Watch on YouTube ↗
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