Cocoa futures sink to six-year low
COCOA futures are trading at their lowest levels for six years and are expected to fall again this week, reports the Financial Times.
The most actively traded contract on the London International Financial Futures and Options Exchange lost £200 a tonne since the beginning of the year.
It now stands at £750, against £1200 last year, says the FT.
Analysts do not see the market improving despite forecasts that the current season will show a supply deficit of 65,000 tonnes.
The market is suffering from “just-in-time” chocolate manufacturers who are matching their cocoa requirements exactly to their production needs.
It is also well supplied from the leading cocoa producing countries of the Ivory Coast, Ghana, Indonesia and Nigeria.
Some analysts are predicting that next year will see a world surplus of about 36,000 tonnes.
- Weak cocoa futures down to manufacturers buying policies, FWi, 03 December, 1998
- LIFFE to allow bulk cocoa deliveries, FWi, 22 September, 1998
- Financial Times 20/04/99 page 32