Cocoa prices fall on Europe concerns
FMCG SUPPLIER NEWS
ProcurementLeaders.com - Dec 8th 2011, 08:54
Cocoa has hit its lowest level since December 2008 on the back of the sovereign debt crisis in Europe and increased supplies from West Africa according to commodity analysts familiar with the industry.
Europe is one of the biggest markets for cocoa beans which are used to produce chocolate, making up in the region of 40% of global demand but because of a slowdown in the regions consumption and a bumper crop prices have been declining.
Speaking to the Financial Times, Keith Flury, commodity analyst at Rabobank, said "The cocoa bean market is vulnerable to economic contraction," adding that consumption of the bean fell in 2008 after the previous financial crisis.
Cocoa prices hit a high last year because of an export ban in the Ivory Coast and a disappointing crop haul.
On Monday the benchmark Liffe March contract hit £1,414 a tonne, 42% down from last year's peak.
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