Today, Arabica coffee futures for July delivery passed $1.34 per pound while cocoa futures rose to $3,007 per metric ton. These numbers are up slightly from those reported by Bloomberg yesterday, which could indicate that both commodities are set to run higher in the week if market and growing conditions persist.
Coffee and cocoa are both highly sensitive to meteorological conditions in their growing regions, as well as fluctuations in worldwide demand. Heavy rains can ruin a harvest or stocks, and the International Cocoa Organization (ICO) says that the rain may do just that in the Ivory Coast and Ghana, which are the world’s first and second biggest cocoa producers, respectively.
The ICO also told Bloomberg that production will probably lag behind demand for the rest of the year.
In news across the Atlantic, the German Federal Cartel Office fined eight of the nation’s largest coffee companies in a price fixing scandal, according to the German newspaper Deustche Welle. The fine totals 30 million euros ($35.9 million), and the German regulator alleges that the companies conspired to fix prices for wholesale bulk coffee.
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