On our most rising table this week*, the price of cocoa has risen after a period of decline.
This upswing in cocoa’s value is due to a combination of factors, mainly supply shortages and adverse weather conditions in West Africa, which produces about two-thirds of the world’s cocoa.
These frequent extreme weather events, like heavy rainfall and droughts, have impacted the overall quality of cocoa, which has demolished harvests.
As such, with demand for cocoa remaining steady and a kilo of cocoa is now being €3 more expensive than last year, it looks like the price of the commodity will remain high for the foreseeable.
Elsewhere, Barclay’s recent surge in price can be attributed to strategic decisions outlined in its earnings report. The company’s proactive restructuring policy, though incurring non-cash charges of £900 million, has captured investor interest. The commitment to reshape its operations may be seen as a long-term positive, overshadowing the short-term setbacks reflected in the financial figures.
Looking at our most falling table*, the decline in crude oil prices can be attributed to multiple factors, with this a primarily being driven by concerns over weakening demand.
The uncertainty surrounding global demand has become more pronounced amid heightened fears of higher-for-longer interest rates in the United States, as indicated by the Federal Reserve. Despite ongoing geopolitical instability in the Middle East, which historically supported oil prices due to potential supply disruptions, the impact of demand worries has prevailed.
Additionally, the price of coffee also declined last week. Improved weather conditions in Brazil, a major coffee-producing region, have eased concerns about crop yields, leading to a bearish sentiment for coffee prices. What’s more, challenges in the global supply chain, specifically related to shipping disruptions caused by attacks on commercial ships in the Red Sea, have led coffee buyers to shy away from robusta bean purchases from Vietnam.
Shares in HSBC experienced a large drop over the past week – marking the most substantial decline since 2020 – following the bank’s report of an 80 percent decrease in quarterly profit.
The pre-tax profits for the final quarter of 2023 plummeted to $1 billion, down from $5 billion in the same period a year earlier, missing analysts expectations of $34 billion for the full year. The disappointing financial performance in the last quarter, coupled with various one-off charges, including hyperinflation in Argentina, contributed to a complex and unfavourable financial landscape.
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