Cocoa specifically has been greatly affected by lockdowns. Chocolate companies continue to report weaker data during the pandemic, as consumers have shifted their income towards necessities.
The macro-sentiment of late has been slowly moving in a positive direction as more is learned about the vaccination process. More reopenings and fewer lockdowns will be supportive for the “foods” prices in commodities.
As news broke that Europe would be easing its Covid-19 restrictions in certain areas, the hope that cocoa demand would rise has supported the market this week.
Traders have been concerned about demand for cocoa all year but as we enter “chocolate season” we see that even chocolate/candy purchases have been affected by Covid-19.
Traders have been concerned about demand for cocoa all year but as we enter “chocolate season” we see that even chocolate/candy purchases have been affected by Covid-19.
