A decline in the monthly average International Cocoa Organisation (ICCO) daily price in April may be misleading to companies tracking cocoa futures. The price was down $42 in April compared with the average price in March, which ranged between $2,375 and $2,810. However, the average daily price in May was $2,674, up $17 from the day before. Analysts believe the demand for chocolate will continue to rise and outnumber production of beans.
Confectionery companies have also been moving into the Asia Pacific region to benefit from increased consumer spending and taste for chocolate. Customers in this region only account for 17% of global cocoa consumption, but the number is increasing at a rate of 25% per year, according to market analysts.
Cocoa sales sink, begin to rise
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