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Coffee and Cocoa Slump With Consumption Dropoff After Russia Attack

  • Much of chocolate, coffee demand relies on restaurants, cafes
  • Sugar swings between gains and losses as traders gauge impact
    

    

Photographer: Marlene Awaad/Bloomberg

Cocoa and coffee slumped in New York following the Russian invasion of Ukraine, with the crisis expected to hurt the global economy and curb consumption of goods like chocolate and lattes at restaurants and cafes.

Demand for chocolate, for which cocoa is the main ingredient, and coffee are still recovering from the pandemic. Much of candy sales take place at airports, which suffered from travel restrictions, and a significant portion of world coffee consumption occurs at restaurants and cafes, which do well when economies are thriving. Analysts at Oxford Economics including Tatiana Orlova lowered its baseline for Russian gross domestic product by 1.2% by 2023, and for European economies by half that amount.