Page last updated at 08:06 GMT, Wednesday, 24 December 2008

Cocoa prices hit a 23-year-high

Cocoa pods
Demand for cocoa is holding up well despite the downturn

London cocoa futures have hit a 23-year-high as cocoa turned out to be the most lucrative commodity in 2008.

Cocoa for delivery in May peaked at 1,820 per tonne in London, which was its highest price since October 1985.

Cocoa traded in the US has also been rising, although not as strongly because of the strength of the dollar.

Most commodities are priced in dollars, even in London trading, but London cocoa is priced in sterling, so traders can benefit from the weaker currency.

"Cocoa is on fire," said Sterling Smith from FuturesOne in Chicago.

"We have supply concerns continuing. The market is plenty bullish and we have plenty of room to go on the upside," he added.

There are concerns about falling cocoa production in Africa, while demand for cocoa is holding up much better than other commodities in the downturn.



Print Sponsor


SEE ALSO
World Bank predicts global gloom
09 Dec 08 |  Business
Ethiopia starts coffee exchange
02 Dec 08 |  Business
Rising costs bite for snack firms
22 Aug 08 |  Business
Ivory Coast hit by cocoa strike
05 Dec 07 |  Business


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific