Cocoa futures rose for the second day in a row as the rate of processing of cocoa beans remained constant against the backdrop of rising cocoa prices and tight supply.
The Zhitong Finance App learned that cocoa futures rose for the second day in a row because cocoa bean processing speed remained unchanged against the backdrop of rising cocoa bean prices and tight supply.
Data shows that Cocoa's most active futures contract rose 3.1% at one point, helping to narrow the weekly decline.
Cocoa processing in North America increased 2.2% in the second quarter, while Europe reported a 4.1% increase last week. Cocoa grinding volume in Asia fell 1.4% year over year, but in line with expectations, as processors are struggling to cope with shortages and rising prices of cocoa beans.
Data from these three regions showed that demand remained elastic in the second quarter as processors used cheaper inventory obtained before prices soared. Cocoa futures prices in New York soared to record highs this year. Poor harvests in West Africa caused supply shortages in the market, but prospects for improved harvests dampened prices.
Dixon Poh, assistant vice president of Asian soft commodities at the brokerage firm StoneX, said after the European data was released last week that despite the price rebound, “chocolate is still very popular, and some companies have even reported an increase in sales.”