In December, the International Cocoa Organization (ICCO) daily price averaged US$2,958 per tonne, up by US$49 compared to the average price recorded in the previous month (US$2,909) and ranged between US$2,894 and US$3,011, according to the ICCO’s Dec. 2014 Cocoa Market Review.
Bearish news of favorable weather conditions and strong harvests from the West African region that led cocoa prices to fall in the previous month also led cocoa prices to follow a downtrend during the first week of December. However, during the second week of the month, underpinned by the slow pace of cocoa bean arrivals from Côte d’Ivoire, cocoa futures prices recovered from their earlier losses and rose to US$2,933 per tonne in New York. The rise was short-lived as the strengthening of the United States dollar led to a fall in prices for most commodities. Thus, cocoa futures prices rescinded their gains and fell to US$2,846 per tonne in New York.
From the middle of December through to the third week of the month, cocoa futures prices reverted from their downward trend and rallied. This steady rise in cocoa prices was supported by reports of unfavorable weather conditions resulting from relatively strong Harmattan winds combined with acute heat in the West African region. The impact of the adverse weather conditions on cocoa supplies led cocoa futures prices to rise sharply to their highest levels in December, at US$2,961 per tonne in New York. Towards the end of the month, cocoa prices lost ground in New York, falling to US$2,895, while remaining stable in London, and ranging between £1,957 and £1,962 per tonne, as origin hedging activities weighed on the market. Full report.