Cocoa futures are rallying to multi-year highs with the pick-up in demand from cocoa exporting nations in SE Asia as well as Europe. Cocoa futures are up 12 points today currently trading at $3,279 per ton at the Intercontinental Exchange.
Malaysia has emerged as a major cocoa butter exporter since 2007 and last year exported 103 tons of product – 65% more than the year prior accounting for 20% of total US cocoa butter imports. The European countries of Estonia, Germany, and the Netherlands were also main global suppliers of cocoa butter last year.
“Cocoa butter is a product that will never be out of demand as long as it can reach most of the world’s markets and the people, then the constant demand can keep cocoa (futures) prices elevated,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her assessment regarding the fundamental situation of the cocoa futures markets. Levy adds, “With countries getting these current (cocoa futures) prices, the incentive to keep the market flooded with product will remain high.”
Cocoa futures trend is up with a recent resumption of the up-trend only this month. Key resistance for cocoa futures is at 3400 which is well within reach…
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