Cocoa Prices Rise Due to Ebola Fears
This week saw the general upwards trend in US Cocoa continue having risen gradually from 3,046 on Monday to a high of 3,174.50 on Thursday. The largest gain came in the contract for December 2014 which rose 83; however, all future contracts were up by at least 63.
Prices have been driven higher by the Ebola outbreak in Liberia and Guinea. The Ivory Coast, where around 38% of the world’s cocoa is produced, has shut its boarders with Liberia and Guinea and this has seen a general rise in prices throughout the country.
Furthermore, Agriterra has indefinitely suspended its cocoa activities in Sierra Leone. While the plants that are already there are being maintained, there is no more new planting or clearing going on. For the time being the world’s cocoa supply meets demand, but there is a lot of uncertainty regarding the future.