Cocoa, Coffee Reach New Highs on Fear of Aging Trees
- Cocoa futures surge after surpassing the 10,000 per ton mark
- Robusta coffee is at the highest in data going back to 2008
Ripe robusta coffee cherries, Central Java, Indonesia.
Photographer: Dimas Ardian/Bloomberg
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Cocoa and coffee futures reached new highs on mounting concerns of extreme weather, while aging trees in Africa cocoa crops and Vietnam coffee areas added to concerns.
“Speculators are drawing parallels between cocoa and coffee, which is a bit surprising,” Rabobank analyst Carlos Mera said, adding that trees getting older in Vietnam is one of the reasons coffee production in the country is not expanding.