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Cocoa futures fall despite global supply shortages

Cocoa futures lost 0.73% to $3,408.00/mt today as Asia’s second-quarter cocoa grind (a measure of demand) dropped by 6.5% to 213,977 metric tons from 215,380 metric tons in July 2022. However, in the spot market, cocoa prices remained elevated after reaching a 12-year high of $3,433/mt on July 19 as heavy rainfall in Ivory Coast lowered cocoa yield in the region. Ivory Coast remains the world’s largest cocoa producer, accounting for 45% of the total global cocoa supply.

Oil prices flatten on cautious demand concerns

Brent price remained relatively unchanged today at $79.48pb from $79.46pb on July 19, despite the decline in US crude inventories by 708,000 barrels to 457.4 million barrels. Sentiments in the oil market were mixed due to subdued oil demand in China and US inflation inching closer towards its target rate of 2%. Ahead of the US Fed’s meeting on July 25-26, investors expect the committee to hike the benchmark interest rate for the last time.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s senior analyst, Bolanle Agbaje.

Click the link to watch the video.

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