Cocoa Prices Rise After US Court Decision
Haven fallen from a high of 2,082.00 in August down to a two month low of 1,962 over the past couple of weeks, London cocoa has risen slightly in recent days and is hovering around the 1980 level. The US cocoa market followed a similar trend falling from 3,236 to 3,039 before rising to around 3,070.
The rise came after a US appeal court ruled that Nestle, ADM and Cargill can be held accountable for aiding and abetting child slavery in Côte D’Ivoire and the court has allowed a lawsuit against them to proceed. The companies were accused of trying to reduce costs in any way possible and as such facilitated child slavery.
As the lawsuit progresses it could result in the price of cocoa continuing to rise. However, at the same time Hershey and Cargill have announced plans to bring a cocoa sustainability program to the area which could result in the price remaining steady.