Cocca Market Review December 2014
COCOA MARKET REVIEW
DECEMBER 2014
The current review focuses on cocoa price movements on the international markets during the month of
December 2014. Chart I illustrates price movements on the London (ICE Futures Europe) and New York
(ICE Futures U.S.) markets in December. Chart II shows the evolution of the ICCO daily price, quoted in US
dollars and in SDRs, from October to December 2014. Chart III depicts the change in the ICCO daily price Index,
the Dow Jones Commodity Index and the US Dollar Index. Table 1 summarizes major price developments in 2014.
Chart I: Cocoa bean prices on the ICE Futures Europe
(LIFFE) and ICE Futures U.S. markets
December 2014
1860
1895
1930
1965
2000
2830
2870
2910
2950
2990
£ per tonne
US$ per tonne
New York (at London close) US$
London (close) £
Chart II: ICCO daily prices
October – December 2014
1905
1940
1975
2010
2045
2080
2115
2150
2185
2850
2900
2950
3000
3050
3100
3150
3200
3250
SDRs per tonne
US$ per tonne
US$ per tonne S DRs per tonne
Note: The ICCO d aily pr ice for coc oa b eans is the av erag e of th e
q uotations of the neare st thr ee active fu tu res tr ad ing mo n ths on the ICE
Fu tu res Eu rope and IC E Fu tu res U.S. at th e time of Lo nd o n clo s e,
converted into US$ and SDRs using the appropriate exch ange rates.
Price movements
In December, the ICCO daily price averaged US$2,958 per tonne, up by US$49 compared to the average
price recorded in the previous month (US$2,909) and ranged between US$2,894 and US$3,011.
Bearish news of favourable weather conditions and strong harvests from the West African region that
led cocoa prices to fall in the previous month also led cocoa prices to follow a downtrend during the first week
of December. However, as shown in Chart I, during the second week of the month, underpinned by the slow
pace of cocoa bean arrivals from Côte d’Ivoire, cocoa futures prices recovered from their earlier losses and rose
to £1,934 per tonne in London and to US$2,933 per tonne in New York. The rise was short-lived as the
strengthening of the United States dollar led to a fall in prices for most commod ities. Thus, cocoa futures prices
rescinded their gains and fell to £1,874 per tonne in London and to US$2,846 per tonne in New York. From the
middle of December through to the third week of the month, cocoa futures prices reverted from their downward
trend and rallied. This steady rise in cocoa prices was supported by reports of unfavourable weather conditions
resulting from relatively strong Harmattan winds combined with acute heat in the West African region. The
impact of the adverse weather conditions on cocoa supplies led cocoa futures prices to rise sharply to their
highest levels in December, at £1,963 per tonne in London and at US$2,961 per tonne in New York. Towards
the end of the month, cocoa prices lost ground in New York, falling to US$2,895, while remaining stable in
London, and ranging between £1,957 and £1,962 per tonne, as origin hedging activities weighed on the market.
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