ICCO Report Volatile Cocoa Prices During August 2017

The International Cocoa Organization (ICCO) released the price movement of the cocoa market in August 2017. The ICCO daily price averaged US$1,989 per tonne, same as the average price recorded in the previous month (US$1,989) and ranged between US$1,889 and US$2,107 per tonne. Cocoa futures prices rose above the US$2,000 per tonne level during the first week of August. Expectations of a lower global production for the next season coupled with improved grindings provided support to cocoa prices. During this period, the ICCO daily prices of cocoa beans ranged between US$2,034 and US$2,107 per tonne. Thereafter, from the second week of August through to the middle of the month, once expectations of ample supplies from Côte d’Ivoire and Ghana were reported, cocoa futures markets experienced a downturn in prices and dropped to £1,487 per tonne in London and to US$1,855 per tonnes in New York. The recovery of the United States dollar also pressured commodity prices downwards and cocoa futures followed suit – but to a greater extent. From the middle of the month onwards, cocoa futures prices rebounded from the lows attained during the previous week. Reports of chocolate manufacturers reporting improved sales volumes supported cocoa futures prices. Thus, compared to the aforementioned low levels, cocoa futures prices increased by 5% in London to £1,558 per tonne and by 9% in New York to US$2,013 per tonne. Nevertheless, with not much expected during this period of the season, by the end of the month cocoa futures dropped to £1,538 per tonne and US$1,944 per tonne.