Tue, May 24, 5:04 AM
- The strongest El Nino in nearly 20 years has ended, according to the Australian Bureau of Meteorology, as sea surface temperatures across the Pacific Ocean cool to their neutral levels.
- The dreaded El Nino led to damaged crop production (such as wheat, palm oil and rice) due to scorching weather across Asia and east Africa, and heavy rains and floods in South America.
- ETFs: DBA, CORN, JO, JJG, WEAT, RJA, SOYB, SGG, COW, NIB, CAFE, BAL, CHOC, DAG, CANE, JJA, GRU, AGA, SGAR, USAG, AGF, WEET, FUD, TAGS, CTNN, UAG, DIRT, UBC, ADZ, JJS, LSTK, GRWN
Thu, Jan. 14, 7:50 AM
- Chocolate producers are working together to improve low cocoa crop yields in an effort to meet rising global demand.
- Older trees and poor crop management have held down yields in both Ivory Coast and Ghana.
- A higher level of production could have a ripple effect across the broader cocoa market.
- Related stocks: MDLZ, HSY, OTCPK:NSRGY, OTC:BYCBF, ADM.
- ETFs: NIB, CHOC
Jan. 13, 2015, 5:42 PM
Dec. 18, 2014, 7:02 AM
- Olam's $1.3B deal to buy rival Archer Daniels Midland's cocoa processing business may reduce liquidity in the cocoa bean trade, raising concerns about volatile prices and a potential shake-up of customer relationships.
- Olam buys around 500K tonnes of cocoa annually, and it said it will increase its processing capacity to more than 700K tonnes, or 16% of world supply, with this deal.
- This could force users supplied by Olam to look elsewhere for many of their beans, putting a strain on prices.
- Related stocks: MDLZ, HSY, OTCPK:NSRGY, OTC:BYCBF
- ETFs: NIB, CHOC
- Previously: ADM to sell global cocoa business to Olam International for $1.3B (Dec. 15 2014)
Oct. 16, 2014, 6:47 AM
- Nestle (OTCPK:NSRGY, OTCPK:NSRGF) says it's on "high alert" over the potential impact of the Ebola disease in West Africa.
- The company sources a good portion of its cocoa from Ivory Coast which is on a World Health Organization Ebola watch list.
- Cocoa future are up 16.6% over the last month.
- Shares of Nestle fell in Zurich trading after the company reported a drop in 2014 9-month sales.
- Related ETF: NIB, CHOC.
Sep. 19, 2014, 8:59 AM
Jun. 20, 2014, 6:06 AM
- With the growing demand of chocolate across Asia, and new processing facilities in India and China, cocoa prices have shot through the roof. In the last five years, demand for the beans rose in Asia by 29%, although European demand fell by 1% for the same period.
- ICE September cocoa rose 3.2% to $3,128 a tonne yesterday, its highest level since 2011. The price on cocoa beans has soared by over 40% over the past year, with cocoa butter rising more than 70%.
- ETFs: NIB, CHOC
Apr. 29, 2014, 7:15 PM
- U.S. government forecasters predict a more than 65% chance for an El Niño weather phenomenon by the end of the year, a development that threatens to drive up prices for food and other staples.
- El Niño has a reputation for triggering sharp run-ups for prices in markets as diverse as nickel, coffee and soybeans, and commodities investors, traders and analysts are bracing for impact at a time when global supplies of many raw materials already are stretched.
- Global food prices - which at the start of 2014 were expected to be largely flat this year - could easily climb 15% to record highs in as a little as three months after an El Niño occurs, says World Bank economist James Baffes.
- But Société Générale analysts say it is miners, not farmers, who have the most to worry about; since 1991, nickel prices rose the most (13.9%) during El Niño years among commodities the bank tracks.
- ETFs: DBA, CORN, DBC, JO, JJC, RJA, JJG, WEAT, SOYB, DJP, SGG, DBB, COW, NIB, GSG, RJI, CAFE, BAL, GCC, DAG, USCI, JJA, GRU, CHOC, CANE, JJN, RGRA, AGA, JJT, RGRC, CPER, AGF, GSP, BOM, RJZ, JJU, GSC, LSC, FUD, DJCI, USAG, BOS, SGAR, JJM, DEE, BDD, UCI, LD, WEET, UAG, DYY, DIRT, BCM, CMD, DDP, NINI, JJS, CTNN, TAGS, UBC, CUPM, FOIL, UCD, ADZ, RGRI, LEDD, UBM, CMDT, BDG, SBV, USMI, DPU, LSTK, CSCB, GRWN, HEVY, CSCR