Cocoa Futures Hit 3-Year High, Then Drop with Coffee and Sugar

On Thursday, traders watching global commodity markets saw a sharp rise in cocoa futures—peaking at the highest level in nearly three years—only to watch them fall back by the close. The move came alongside declines in both coffee and sugar, driven not by fundamentals, but by profit-taking and pre-holiday positioning.

Cocoa prices briefly surged to their highest since August 2011 before closing lower, showing just how quickly market sentiment can shift—even after strong signals like rising demand from emerging markets.

Why Did Cocoa Futures Spike to a 3-Year High?

The benchmark September ICE cocoa contract initially climbed as high as $3,149 per ton on July 3—that’s the highest level since August 2011. But by the close, it had dropped $11, or 0.4%, to settle at $3,106 per ton. The early surge was fuelled by a positive earnings report from Barry Callebaut, the world’s largest chocolate maker, which noted an 18.2% growth in emerging market chocolate sales over the first nine months of its 2013/14 fiscal year.

What Caused the Late Sell-Off?

Traders pointed to two main factors behind the reversal: modest profit-taking and investors closing positions ahead of the U.S. Independence Day holiday on July 4. That combination led to a wave of selling, even though the underlying market data showed the global cocoa supply and demand were nearing balance for the 2013/14 season.

How Did Other Commodities Perform That Day?

Other key commodities also shifted notably:

• London’s LIFFE September cocoa futures fell £4 to £1,927 per ton.
• ICE October raw sugar dropped 0.6 cents to 17.81 cents per pound.
• LIFFE August white sugar initially fell, but rebounded late to close up $2.60 at $470.10 per ton.
• ICE September arabica coffee futures declined 2.0 cents (1.2%) to $1.7180 per pound.
• LIFFE September robusta coffee rose $21 (1.1%) to $2,068 per ton.

What Does This Mean for Coffee and Chocolate Markets?

While cocoa had a dramatic intraday move, all three major soft commodities—cocoa, coffee, and sugar—closed lower on the day. For coffee traders, the 1.2% drop in arabica and 1.1% gain in robusta reflect ongoing volatility based on positioning and external market factors rather than shifts in origin fundamentals. Traders remain sensitive to holidays, technical levels, and short-term profit windows.

Frequently Asked Questions

What was the highest cocoa futures price reached on July 3?

Cocoa futures hit an intraday high of $3,149 per ton on July 3, the highest level since August 2011. That’s a significant spike reflecting strong market interest before profit-taking set in.

Why did cocoa futures fall at the close if they hit a 3-year high?

Despite the intraday high, cocoa futures closed lower due to profit-taking and investors closing positions ahead of the July 4 U.S. holiday. The September ICE contract ultimately settled down $11 at $3,106 per ton.

What did Barry Callebaut report about chocolate sales?

Barry Callebaut, the world’s largest chocolate manufacturer, reported an 18.2% increase in emerging market chocolate sales during the first nine months of its 2013/14 fiscal year. This news helped drive early buying interest in cocoa.

How did coffee futures perform compared to cocoa?

Arabica coffee futures fell 1.2% to $1.7180 per pound, while robusta coffee futures rose 1.1% to $2,068 per ton. Both closed lower than earlier highs but moved in opposite directions on the day.

Were sugar futures also affected by holiday trading?

Yes. Both raw and white sugar futures saw movement, with raw sugar falling 0.6 cents to 17.81 cents per pound, while white sugar rebounded to close up $2.60 at $470.10 per ton despite early losses.

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