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Cocoa hits all time highs

Cocoa futures have once again surged upwards, surpassing $9,000 per metric ton, marking a record-breaking high.

At the outset of 2024, cocoa was trading at levels below $4,200 per ton. Prices have also escalated by over 10% within just the span of a single week alone.

The impetus behind this historic rise traces back to a combination of supply and demand disruptions. Severe El Niño-induced dry weather conditions, alongside reported wildfires and an outbreak of the cacao swollen shoot virus, have significantly curtailed cocoa supply. Concurrently, demand has remained robust in nations such as the U.S., facilitating companies like Hershey’s and Mondelez to pass on the burden of escalating prices to consumers.

You can read more on the matter here.

What’s going on?

• Not So Fast: DOJ Fights Back After Dismissal of Atlas Trading Fraud Case, Claims Likely Appeal Success (theDeepDive)

• Apple, Google, Meta Probed by EU in Test of New Digital Law (Bloomberg)

• Why Won’t Jeff Bezos Save the Washington Post? (theDeepDive)

• Nissan looks to address ‘extreme market volatility’ with 30 new models, EV cost cuts (CNBC)

• China’s Water Cannons Test US-Philippines Pact in Sea Feud (Bloomberg)

• Republican Lawmakers Call Out IEA For Bias Against Fossil Fuels (theDeepDive)

• US new home sales unexpectedly fall in February (Reuters)

• Trump Pleads for Donations as Deadline Looms for Massive Fraud Bond (theDeepDive)

• Trump Facing Moment of Truth for Finances in Manhattan Court (Bloomberg)

• Nelson Peltz withholds votes from Disney CEO Bob Iger in proxy battle (CNBC)

• Federal Authorities Are Asking Google For Data On Viewers Of Specific YouTube Videos (theDeepDive)

• Macron says Islamists who hit Russia had tried to attack France (Reuters)

• Elon Musk Changes X Policy to Protect Antisemitic Cartoonist (theDeepDive)

What’s the latest?

• Boeing Upheaval: Boeing Co. announced major leadership changes, with CEO Dave Calhoun planning to depart at the end of 2024, Chairman Larry Kellner not seeking re-election, and Stan Deal, head of Boeing’s commercial airplanes division, retiring immediately. Stephanie Pope, the COO, will step into Deal’s position.

• Alberta Bumps Tax: Alberta is set to increase its fuel tax for gas and diesel by four cents to 13 cents per litre starting April 1, as oil prices have fallen, prompting the provincial government to fully reinstate its fuel tax. The adjustments to the fuel tax rates, which occur quarterly, are based on the average price of West Texas Intermediate oil. The increase is set to occur at the same time that the Federal government increases its carbon tax.

• Cable Ditched: As of the end of last year, 42% of Canadian households did not have a TV subscription with a traditional provider, a number expected to rise to 50% by 2026. Meanwhile, over 80% of households now subscribe to at least one streaming service. In 2023, revenue for traditional TV providers fell by 3% to $7.2 billion, while streamers saw a 14% increase in subscription revenue to $3.73 billion, as per the latest Couch Potato Report.

• Cocoa Problems: The global cocoa market is facing significant challenges, leading to higher chocolate prices this Easter. Bad weather and disease in West Africa, particularly in Côte D’Ivoire—which accounts for about 40% of the world's cocoa production—have resulted in a substantial 30% decline in production. This decline is attributed to climate change and disease, contributing to a nearly 65% increase in cocoa prices over the past year.

• Moscow Attack: Following a deadly attack on a concert hall near Moscow, resulting in at least 137 deaths and 182 injuries, the Kremlin emphasized that no country is fully immune to terrorism. This incident, the worst attack inside Russia in two decades, led to President Vladimir Putin vowing that all responsible would face punishment, with 11 people detained.

Los Azules Copper

The stock market and stuff

• Choco, The New Crypto? Cocoa Soars To Record-Breaking $9,000-Mark (theDeepDive)

• Lightspeed CEO Dasilva Says Company Is ‘Open’ to Going Private (Bloomberg)

• Exclusive: Russia orders companies to cut oil output to meet OPEC+ target (Reuters)

• Microsoft Cuts Off Cloud Services in Russia Amid Sanctions (theDeepDive)

In the juniors

• ATHA Energy Sees 92 Energy Shareholders Approve Of Merger (theDeepDive)

• Patriot Battery Metals Identifies New Spodumene Pegmatite At Corvette (theDeepDive)

• Awale Resources Jumps As Much As 170% After Hitting 45.7 g/t Gold Over 32 Metres (theDeepDive)

FULL DISCLOSURE: PharmaDrug is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of PharmaDrug. The author has been compensated to cover PharmaDrug on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.