Exclusive: Traders face $1 billion loss on faltering Ghana cocoa supply, sources say
This week, a Reuters exclusive revealed that trading houses face losses of at least $1 billion on cocoa derivatives after Ghana, the world’s second-largest producer, failed to deliver beans this year, forcing traders to liquidate short positions in a rallying market. Industry sources told Reuters Cocobod, the regulator, wants to delay delivery of up to 350,000 metric tons this season - nearly half of the cocoa beans they sold - due to Ghana's devastated crop. Cocobod said the country was looking to roll over "some volumes, but not in those quantities." The cocoa market faces a third successive deficit year, and prices have roughly doubled this year.
Cocoa prices plunge on beneficial growing conditions in West Africa
Barchart.com reported that cocoa prices were sharply lower earlier this week as beneficial wetter growing conditions in West Africa raise expectations for cocoa crop prospects. A bearish factor for cocoa was last Thursday's action by Conseil du Café Cacao (CCC), Cote d’Ivoire cocoa regulator, to resume some forward sales for the 2024-25 cocoa crop to buyers with domestic processing plants. Due to production concerns, the country halted forward sales of its 2024-25 cocoa crop six months ago. Signs of more robust global cocoa demand are also supportive of prices.
Barry Callebaut sinks as cocoa costs drag on chocolate sales
According to a senior analyst and close Barry Callebaut watcher, the world’s largest chocolate and cocoa supplier “continues to face significant exogenous, unprecedented market headwinds” despite boasting a loyal customer base and encouraging growth rates. Vontobel’s Jean-Philippe Bertschy also expected cocoa prices to remain high this year. Barry Callebaut AG’s shares plunged the most in 15 years as investors doubted whether chocolate demand would withstand sky-high cocoa prices. Sources: swissinfo.ch/Bloomberg
European People’s Party proposes two-year delay to EUDR deforestation laws
Neil Barston, editor of Confectionery Production, reported that the European People’s Party (EPP) has proposed delaying the introduction of the much-anticipated EU Deforestation Regulation (EUDR), which aims to tackle supply chain deforestation. Peter Leise of the EPP has reportedly called for ‘an urgent procedure’ targeting the revision of the EUDR timetable, pushing it back until 2027 to enable further guidance and strategy surrounding its delivery to be formulated. As CocoaRadar reported, there has been much chatter about whether the European Commission (EC) will propose postponing the EUDR. While there is no definitive evidence that it plans to do so, we understand that there is significant pressure from other stakeholders on the EC and ongoing discussions around potential delays.
Tesla expands brand into candy market with innovative flavours
Yes, we had to look twice at this story carried in the company’s in-house Tesla Mag to ensure we were not hallucinating. However, the electric vehicle giant and space explorer is boldly moving into the confectionery market after filing four new trademark applications ‘for unique candy products that are sure to capture the public’s imagination.’ Whether these trademark applications will lead to product launches remains to be seen. However, the buzz created by the filings indicates significant interest in Tesla’s potential expansion into the confectionery market. These candies could become a quirky yet popular addition to Tesla’s diverse product portfolio if successful.