NY cocoa prices close to breaking 44-year high
Action by the Ghanian government to forcibly raise prices for cocoa beans sold through the west African country, to help local communities, has pushed up prices.
Prior pressure related to poor crops but now Ghana wants to reward its own people with high prices for this prized foodtsuff.
Cocoa is the chief agricultural export of Ghana, and it is the world’s second largest exporter of cocoa beans to the Ivory Coast.
(Video summary)
NY cocoa prices on the rise
This video focuses on the cocoa market, specifically New York cocoa. We learn that cocoa has been traded since 1925 and currently its prices are on the rise. In fact, the chart shown in the video illustrates an upward trend in cocoa prices, approaching the highs last seen in 2011. If the market breaks this level, it will reach a 44-year high.
The video then goes on to provide some advice to traders. It emphasises the importance of setting stop-losses, which basically means placing a limit on the amount of money one is willing to lose in a trade. Jeremy also mentions that the trend in cocoa prices is becoming steeper, which might discourage potential buyers.
However, he mentions a positive development in the cocoa market - the Ghanaian government has increased cocoa prices by an impressive 63% in order to support local agricultural communities, and this has been seen as a feel-good story. As a result of this increase in cocoa prices, we can expect the prices of cocoa products like chocolate and cocoa powder to also rise.
Implications on the cocoa industry
It's important to note that the ongoing trend in cocoa prices is still uncertain, meaning it's not clear how much further prices will rise. However, it is clear that the cocoa market is experiencing some interesting developments that traders and consumers should keep an eye on.
For example, if cocoa prices reach a 44-year high, it could have implications for the entire cocoa industry. Overall, this video provides some valuable insight into the cocoa market and its potential future trajectory.
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