• Latest
  • Trending
  • All
  • Market Updates
  • Cryptocurrency
  • Blockchain
  • Investing
  • Commodities
  • Personal Finance
  • Technology
  • Business
  • Real Estate
  • Finance
Record cocoa prices prompt buyers to delay orders, says Swiss chocolate maker

Record cocoa prices prompt buyers to delay orders, says Swiss chocolate maker

January 22, 2025
Nonfarm Payrolls increase by 147,000 in June vs. 110,000 expected

Nonfarm Payrolls increase by 147,000 in June vs. 110,000 expected

July 4, 2025
Signs of a pick-up in venture capital exits are finally emerging

Signs of a pick-up in venture capital exits are finally emerging

July 4, 2025
Ondo Finance and Pantera to Invest $250M in Tokenized Real-World Assets

Ondo Finance and Pantera to Invest $250M in Tokenized Real-World Assets

July 3, 2025
Despite Protests, Elon Musk Secures Air Permit for xAI

Despite Protests, Elon Musk Secures Air Permit for xAI

July 3, 2025
How oil traders called the Middle East war

How oil traders called the Middle East war

July 3, 2025
Quantum Stock Watch: Bullish Analyst Coverage On IonQ, D-Wave, Rigetti Computing – D-Wave Quantum (NYSE:QBTS), IonQ (NYSE:IONQ)

Quantum Stock Watch: Bullish Analyst Coverage On IonQ, D-Wave, Rigetti Computing – D-Wave Quantum (NYSE:QBTS), IonQ (NYSE:IONQ)

July 3, 2025
Oil settles lower on Friday but climbs $2 on the week

Oil settles lower on Friday but climbs $2 on the week

July 3, 2025
Sentiment sours in the US oil patch amid low crude prices

Sentiment sours in the US oil patch amid low crude prices

July 3, 2025
Investor fright over Reeves’ tears shows fragility of UK finances

Investor fright over Reeves’ tears shows fragility of UK finances

July 3, 2025
Bessent:  Expect to see about 100 countries get minimum 10% reciprocal tax

Bessent: Expect to see about 100 countries get minimum 10% reciprocal tax

July 3, 2025
Bitcoin Flashes Double Top Above $106,000: FVG Says A Large Crash Is Coming

Bitcoin Makes History With Highest Monthly Close, But Volume Is Still Bearish

July 3, 2025
Trump ‘big beautiful’ bill gives top 1% biggest tax cuts in these states

Trump ‘big beautiful’ bill gives top 1% biggest tax cuts in these states

July 3, 2025
Friday, July 4, 2025
No Result
View All Result
InvestorNewsToday.com
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech
InvestorNewsToday.com
No Result
View All Result
Home Commodities

Record cocoa prices prompt buyers to delay orders, says Swiss chocolate maker

by Investor News Today
January 22, 2025
in Commodities
0
Record cocoa prices prompt buyers to delay orders, says Swiss chocolate maker
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Keep knowledgeable with free updates

Merely signal as much as the European firms myFT Digest — delivered on to your inbox.

Document cocoa costs are prompting chocolate consumers to postpone orders and try and renegotiate pricing, in keeping with chocolate maker Barry Callebaut.

Cocoa costs have nearly tripled prior to now 12 months as excessive climate and illness have hit harvests in Ivory Coast and Ghana, which collectively produce two-thirds of the world’s cocoa.

Three consecutive seasons of worldwide cocoa deficits had pushed costs to “astronomical ranges”, mentioned Oran van Dort, commodity analyst at Rabobank, including that there was a threat of one other deficit within the upcoming season. 

“The expectation . . . because the preliminary [price] rally took off has been that costs will probably be handed on to shoppers, both immediately by way of larger chocolate costs, or not directly as producers utilise shrink[-flation] and skimpflation methods,” mentioned van Dort. 

Switzerland-listed Barry Callebaut mentioned on Wednesday it had offered much less chocolate within the three months to November 30 however nonetheless managed to extend gross sales revenues, which analysts attributed to the corporate passing on larger prices to prospects.

Line chart of London ICE cocoa futures (£ per tonne) showing Cocoa prices have soared to record highs

The group, whose prospects embody chocolate makers Hershey, Lindt and Mondelez, offered 565,000 tonnes of chocolate within the three months to November 30, down 2.7 per cent from the identical interval in 2023 and under analyst expectations of 568,000 tonnes. Gross sales income rose 22.6 per cent to SFr3.45bn ($3.8bn) over the identical interval. The corporate blamed the decline in volumes partly to pricing negotiations and to “short-term client response to larger costs”.

The steep rise in cocoa costs has elevated liquidity challenges throughout the sector, notably by way of margin calls — the extra capital merchants are required to place as much as keep positions within the futures market.

As costs soar, merchants and firms hedging their cocoa prices are required to deposit extra funds to cowl the elevated worth of their positions, tying up liquidity that would in any other case be used for operations or funding.

The strain on chocolate firms will not be more likely to ease quickly, in keeping with Jonathan Parkman, co-head of agriculture at commodity dealer Marex. 

Years of depressed costs have eroded cocoa farmers’ capability to reinvest of their land, leaving huge swaths of plantations reliant on ageing, underperforming timber that battle to resist pests and unpredictable local weather situations.

“Very considerably, the timber appear unable to maintain any interval of adversity,” mentioned Parkman. “In any season you’re going to get climate that’s typically good, typically poor. However now, once we’re getting the poorer climate, the timber are unable to bounce again, they’re unable to regenerate yields and manufacturing drops away in a short time.”

Barry Callebaut’s shares had fallen 7.9 per cent by early afternoon on Wednesday, rating it among the many worst performers on Europe’s benchmark STOXX 600 index.



Source link

Tags: buyerschocolateCocoadelayMakerordersPricespromptrecordSwiss
Share196Tweet123
Previous Post

FCA chief calls for politicians to define acceptable level of harm to consumers

Next Post

NFLX, JNJ, ORCL, F and more

Investor News Today

Investor News Today

Next Post
NFLX, JNJ, ORCL, F and more

NFLX, JNJ, ORCL, F and more

  • Trending
  • Comments
  • Latest
Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

February 5, 2025
Niels Troost has a staggering story to tell about how he got sanctioned

Niels Troost has a staggering story to tell about how he got sanctioned

December 14, 2024
Best High-Yield Savings Accounts & Rates for January 2025

Best High-Yield Savings Accounts & Rates for January 2025

January 3, 2025
Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

January 5, 2025
Why America’s economy is soaring ahead of its rivals

Why America’s economy is soaring ahead of its rivals

0
Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

0
Nato chief Mark Rutte’s warning to Trump

Nato chief Mark Rutte’s warning to Trump

0
Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

0
Nonfarm Payrolls increase by 147,000 in June vs. 110,000 expected

Nonfarm Payrolls increase by 147,000 in June vs. 110,000 expected

July 4, 2025
Signs of a pick-up in venture capital exits are finally emerging

Signs of a pick-up in venture capital exits are finally emerging

July 4, 2025
Ondo Finance and Pantera to Invest $250M in Tokenized Real-World Assets

Ondo Finance and Pantera to Invest $250M in Tokenized Real-World Assets

July 3, 2025
Despite Protests, Elon Musk Secures Air Permit for xAI

Despite Protests, Elon Musk Secures Air Permit for xAI

July 3, 2025

Live Prices

© 2024 Investor News Today

No Result
View All Result
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech

© 2024 Investor News Today