New York — Cocoa ICE futures traded at a two-year high yesterday settling at $2,729 per metric ton and were up to $2,746 today. This comes upon announcement of the ICCO’s deficit prediction of 70,000 tonnes for the 2013-14 season, a result of a surge in demand and a poor harvest in West Africa. Official reports are due Oct. 17, but the ICCO predicts the season ending Oct. 1 saw a 52,000-metric ton deficit.
The expected 30 percent uptick in chocolate demand by 2020, according to Euromonitor International, Ltd. coupled with the deficit, is causing producers to stock up on cocoa butter, prices for which have risen 80 percent throughout the past year. Yesterday the butter ratio reached 3.05, its highest point since 2005. The butter ratio measures cocoa butter prices against bean prices, meaning butter traded at three times the price of raw beans yesterday.