Cocoa futures jump

Cocoa futures climbed sharply this week as traders priced in fresh risks to shipping and crop flows, pushing both New York and London contracts higher. (barchart.com) Barchart said May ICE New York cocoa rose about 119 points, or 3.70%, while May London cocoa gained about 92 points, or 3.80%, in the latest move. ICE says its cocoa futures contract is the global benchmark for physical delivery into five U.S. ports. (barchart.com, ice.com) The immediate trigger was concern that Middle East turmoil could disrupt shipping, lift insurance and fuel costs, and tighten fertilizer supplies used by cocoa growers. Barchart tied the move to fears around the Strait of Hormuz, while separate supply-chain reports described broader pressure on Red Sea and Gulf routes in April. (barchart.com, foodnavigator.com) The market is also watching West Africa, where Ghana’s mid-crop was expected to improve after better rains. Farmers and industry participants told Reuters that payment delays of up to six months are leaving growers short of cash for labor and transport during harvest. (wsau.com) Ghana is the world’s second-largest cocoa producer, so disruptions there can quickly feed into futures prices. Reuters reported that growers said the delayed payments could keep beans from reaching buyers even when pods are ready to pick. (wsau.com) Nigeria added another supply warning sign. Barchart cited Bloomberg data showing Nigerian cocoa exports for February fell 4.6% from a year earlier to 40,110 metric tons, tightening the outlook from the world’s fifth-largest producer. (barchart.com) The recent bounce follows a much bigger reversal from last year’s extremes. Trading Economics said cocoa was still down more than 60% from a year earlier even after the April rebound, showing how volatile the market has remained after the 2024-25 supply shock. (tradingeconomics.com) For chocolate makers and importers, cocoa futures are the price signal to watch because they shape hedging costs before beans are shipped and processed. With freight risks in the Middle East and farm-payment problems in Ghana both unresolved on April 23, traders are treating supply as fragile again. (ice.com, barchart.com, wsau.com)