For the week ending June 30, the average weekly prices for cocoa futures in the US and London fell week-over-week. Cocoa futures in the US are used as a benchmark for cocoa prices globally, while the futures traded in London are used as a physical cocoa global benchmark.
On June 30, cocoa futures in the US stood 4% higher at $1,836 per metric ton from $1,769 per metric ton on June 23. However, the average weekly prices for the week ended June 30 moved 2.7% lower to an average of $1,804 per metric ton from an average of $1,854 per metric ton in the week ending June 23.
This trend was also evident in cocoa futures traded in London. On June 30, the cocoa futures expiring on July 14 closed 1% higher at $1,528 per metric ton from $1,517 per metric ton on June 23. The weekly average cocoa futures in London closed 2.6% lower at $1,500 per metric ton from an average of $1,541 per metric ton in the week ending June 23.
The cocoa forward curve for the US shifted lower for all maturities when compared to levels in the previous week. The near-term maturities have fallen more than farther-term maturities for US cocoa contracts. Companies (NIB) such as Mondēlez International (MDLZ), Hershey (HSY), Rocky Mountain Chocolate Factory (RMCF), and Tootsie Roll Industries (TR) could benefit from falling cocoa prices.
In contrast, cocoa futures for contracts of all future maturities traded in London have shifted to higher levels week-over-week.
Next, we’ll discuss orange juice futures.