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Cocoa Futures Plunge Amid Surplus Concerns; Coffee Rises

3/6/2025

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Summary

Story summary

Cocoa futures on the ICE exchange dropped to near four-month lows, driven by the ICCO's forecast of a 142,000-ton global surplus for 2024/25.
Hershey expressed concerns over reduced liquidity and volatility in the ICE market, calling for an investigation into speculator activities.
Arabica coffee prices experienced a slight increase, while raw sugar futures declined amid Indonesia's plans for extensive sugar palm cultivation for ethanol.

History

Historical Context

Cocoa futures are nearing four-month lows, reflecting a global surplus forecast. This echoes the 2007-08 food crisis, which spurred volatility in commodity markets. Historical price shocks have often led to market investigations, highlighting the ongoing struggle for transparency in agricultural futures trading.

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Story summary

Cocoa futures on the ICE exchange dropped to near four-month lows, driven by the ICCO's forecast of a 142,000-ton global surplus for 2024/25.
Hershey expressed concerns over reduced liquidity and volatility in the ICE market, calling for an investigation into speculator activities.
Arabica coffee prices experienced a slight increase, while raw sugar futures declined amid Indonesia's plans for extensive sugar palm cultivation for ethanol.

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