Cocoa futures rose above $2500 a tonne in the second week of January, recovering from an over two-week low of $2423 touched on January 6th amid firm demand and tight supplies.
Data showed the cocoa grind in top producer Ivory Coast rose almost 2% year-on-year in December to 52,000 tonnes whereas on the supply side, cocoa arrivals at ports in Ivory Coast fell 6.4% year-on-year during October to January 9th period.
Traders also expect improved demand conditions in fourth-quarter grinding data of Europe, Asia and the U.S., due next week. Meanwhile, light rains and mild seasonal winds in most of Ivory Coast’s cocoa-growing regions raised outlooks for both October-to-March and April-to-September crops.
Elsewhere, the International Cocoa Organization in its recent report projected that global demand for cocoa would go up by 4.9 million tonnes in the 2021/2022 cropping season whereas production would rise by 5.2 million tonnes due to better weather conditions in major producing countries.
Source : Trading Economics