Commerzbank Research says the cocoa price remains volatile although another large crop is expected in Côte d’Ivoire.
Commerzbank said arrivals in Côte d’Ivoire are prompting observers to expect a large crop of approximately the same size as last year, when a record crop was harvested.
“The fact that political protests have come to an end in Ecuador, the third-largest growing country, and apparently not disrupted production of cocoa, is also reassuring,” said Commerzbank.
It noted that Ecuador is expected to export a record amount of cocoa in 2019/20, as it also did last year.
“Excessive rainfall in Côte d’Ivoire of late has led to uncertainty about global supply,” said Commerzbank.
“If the rains cause widespread disease and hamper harvesting for a prolonged period, sentiment could turn.