Christian of CPM Group said on the demand side, cocoa is just modestly higher.
At the same time though, there have been some supply concerns driven by political problems in the Cote d'Ivoire, West Africa, the largest producing country of cocoa. These political issues have led to a one-month export ban on Cote d'Ivoire cocoa as pressure is applied to the government to force the president to step down. "There's an ill ease in the cocoa market because of the political risks within Cote d'Ivoire. And that has pushed the price up."
Still, Christian noted that overall supply shouldn't experience any shock given that the current political situation doesn't' affect any of the cocoa that's already been licensed for export. In addition, cocoa exports in Cameroon and Ghana have likely been rising.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV