The year-on-year price of cocoa is now in decline, according to the LIFFE futures data, recorded in British Baker’s commodities table.
The price (£/per tonne) on 11 January this year stood at £2,264 (+23.24 yoy) and, by 9 July, had risen to £2,601 (+59.08 yoy). However, in September (6/9) the price dipped under the £2k mark to £1,962 (+5.54 yoy), and this month (12/11) stands at £1,812 (-11.26 yoy).
Following a price decline in both the New York and London cocoa markets in August, cocoa futures moved sideways at the beginning of September, according to the International Cocoa Organisation’s (ICCO’s) monthly market report for September.
In its latest report, for October, it noted that a strong US dollar pressured cocoa prices to decline in the first month of October in both the London and New York markets. The price then fluctuated throughout the month, and ended up slightly lower at the end of October than the beginning.
"Market participants monitoring the presidential elections on the Côte d’Ivoire (Ivory Coast) were expecting a short covering rally, but that failed to materialise and prices fell by 5% to £1,882 (from £1,988 at the beginning of October) and by 4% to US$2,824 in London and New York respectively," said the report.