uploads///Cocoa Commodities Prices

How Cocoa Prices Traded during the Week Ended June 23

Adam Jones - Author

Jun. 27 2017, Updated 9:09 a.m. ET

Cocoa prices

Cocoa prices for the week ended June 23 ended in negative territory in the US and London. Cocoa futures in the US are considered a global benchmark for cocoa prices. Cocoa futures traded in London are considered a global benchmark for physical cocoa pricing, according to the Intercontinental Exchange (or ICE).

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Weekly movements

During the week ended June 23, the average cocoa near-month futures price fell ~8.9% week-over-week to $1,842 per metric ton from $2,023 per metric ton in the previous week. 

On an average, the near-month futures cocoa prices in London during the week ended June 23 were trading ~6.4% lower at 1,524 British pounds per metric ton from 1,629 British pounds per metric ton week-over-week.

Forward curve

Compared to a year ago, the current cocoa prices in the US are almost 44% lower year-over-year, and the prices in London are trading 34% lower year-over-year. The current forward curve for cocoa futures in the US and London slopes steeply upward. Both markets are currently in contango.

Companies (NIB) such as Rocky Mountain Chocolate Factory (RMCF), Hershey (HSY), Mondēlez International (MDLZ), and Tootsie Roll Industries (TR) would benefit from falling cocoa prices. This downward price trend could help lower the cost of production, as cocoa is a key ingredient for these companies.


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