I was just reading the weekly commodities report I get from Cleveland Research and could not have given a better description than they did on the cocoa situation in the Ivory Coast. Gbagbo is out, Ouattara is in and resistance from Gbagbo loyalists has slowed significantly. Here’s what the fine folks at Cleveland Research wrote:
“Cocoa price fell $268/ton last week on expectations that the lifting of EU sanctions on Ivory Coast (following the arrest of former President Gbagbo) would allow for the resumption of trade with the world’s leading source of cocoa. Traders suggest that it could be weeks before shipments normalize and it appears there are concerns of product degradation given the disruption. Cocoa prices are -16% m/m, but are +4% y/y.”
Well said.
Sugar prices have fallen due to the Brazilian sugar harvest beginning and class I milk is up, although not at record levels yet. Nonfat dry milk is rising sharply, currently trading at about $1.57, up from about $1.20 this time last year.
