February 28, 2024

The hand of Alain Kablan Porquet in dry cocoa beans, in Gagnoa, Ivory Coast, November 19 2023. 

The Washington Post | Getty Images

Cocoa prices have surged to all-time highs this week as bad weather conditions hammer crop yields in West Africa, home to three quarters of the world’s production.

Cocoa futures prices have surged more than $1,000 or nearly 40% since the start of the year to hit an intraday all-time high of $5,874 per metric ton Thursday.

The El Nino weather phenomenon is causing drier temperatures in West Africa, hurting crop yields in Ghana and Ivory Coast, the two largest producers of the bean.

“The changing weather patterns means that the potential yields of cocoa are now permanently impaired,” Humza Hussain, a commodities analyst at TD Asset Management, told CNBC Thursday.

Hershey CEO Michele Buck said Thursday that the chocolate maker’s earnings growth will be flat this year due to historically high cocoa prices. Hershey reported fourth quarter net income of $349 million, a nearly 12% decrease compared to the year-ago period.

“As we look at those record cocoa prices, certainly it’s a dynamic market and those are a challenge but we have lived through market volatility and fluctuation in input costs before,” Buck told CNBC Thursday.

“We have a good hedging strategy and we have really good price visibility on those inputs into 2024,” she said.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Batman138 Bro138 Dolar138 Gas138 Gudang138 Hoki99 Ligaciputra Panen77 Zeus138 Kilat77 Planet88 Gaspol168 Sikat88 Rupiah138 Garuda138 Gacor77 Roma77 Sensa138 Panen138 Slot138 Gaco88 Elanggame Candy99 Cair77 Max7 Best188 Space77 Sky77 Luxury777 Maxwin138 Bosswin168 Cocol88 Slot5000 Babe138 Luxury138 Jet77 Bonanza138 Bos88 Aquaslot Taktik88 Lord88 Indobet Slot69 Paus138 Tiktok88 Panengg Bingo4d Stars77 77dragon Warung168 Receh88 Online138 Tambang88 Asia77 Klik4d Bdslot88 Gajah138 Bigwin138 Markas138 Yuk69 Emas168 Key4d Harta138  Gopek178 Imbaslot Imbajp Deluna4d Luxury333 Pentaslot Luxury111 Cair77 Gboslot Pandora188 Olxtoto Slotvip Eslot Kuy138 Imbagacor Bimabet