Cocoa prices are expected to remain elevated as demand picks up, especially in Europe and North America, the Bank of Ghana has revealed.
According to the Bank of Ghana, declining headline inflation and lower energy prices, coupled with lower port arrivals in Ivory Coast, are also expected to support cocoa prices.
Cocoa prices were generally bullish in the first four months of 2023.
This according to the Central Bank was driven by lower production volumes, higher grinding in top-grower Ivory Coast, and increased global demand.
Prices began the year at $2,539.86 per tonne in December 2022, and rose to $2,924.37 per tonne in April 2023, up by 15.2% year-to-date and 13.0% on year-on-year terms.
In the first four months of 2023, cocoa beans exports rose by 30.3% to $950.8 million, largely on the back of the increased volume of exports.
However, the oil market is expected to be tight in the second half of 2023, mainly on the back of demand and supply dynamics.
OPEC+ announced a voluntary output cut from May till the end of 2023. Russia also announced plans to restrain output, alongside expected pick-up in demand from China and other emerging economies, all of which would be supportive of prices.
Meanwhile, the bullish momentum for gold seems likely to continue into the second half of 2023.
According to the Bank of Ghana, the less-hawkish tone by the Fed, uncertain global economic outlook, rising demand from China and India and increasing central bank gold purchases are catalysts that could support gold prices