Cocoa ends the year with big profits amid the fear of lack of supplies

Cocoa prices have risen by 172% over the past twelve months, powered by a wave of bad crops in Ivory Coast and Ghana, where most of the crop is grown. The decline in global stocks has increased the pressure on buyers and chocolate makers. Standard cocoa prices have reduced the liquidity (cocoa futures) for their lowest levels in more than a decade, as the requests for margin purchases have increased, and traders who retain the centers have become very expensive (because traders need to place more money to keep their positions open). The decline in futures liquidity has contributed to sharp fluctuations, with prices of more than a thousand dollars on some trading days. Futures in New York, after the biggest daily profit since May in the previous session. The London market also saw movements between minor profits and losses. The weather, including the dry and soil winds known as ‘Harmatan’, will remain a major challenge for the current Cocoa season in West Africa. Analysts at Adm Investor Services wrote in a Monday note: “The winds of Harmatan are expected to be near the average rate, but low humidity, abundant sunlight and wind will negatively affect some trees,” analysts at Adm investor services wrote in a Monday. The rise in coffee prices increased the price of Arabica Coffee in New York by 67% this year, exceeding its highest levels in more than 40 years. This increase is due to the fear of the impact of drought in Brazil, the largest resource in the world, on the production of next season. On the other hand, soybeans recorded the worst performance among the most important commodities in 2024, with a plethora of production in the United States and Brazil, along with the slowdown of Chinese demand, to the prices of prices by 24%, which is the largest annual decline in two decades. US President -pruned Donald Trump has also promised to increase the definitions of customs on Chinese imports, which could cause commercial soybeans next year, similar to what happened during his first presidential term.