Ample supplies of sugar, coffee and cocoa
PublicationNatural resources
The sugar, coffee and cocoa markets have been under pressure during the corona crisis. The fall in demand in these commodity markets was abrupt and significant due to the spread of the Covid-19 virus. A rapid recovery in demand cannot be expected as the uncertainties surrounding the pandemic are still too great.
Due to the drop in demand, the availability of sugar, coffee and cocoa is currently more than sufficient. This increased availability will eventually have a downward effect on prices.
Sugar: sugar production continues to increase due to the low ethanol price
Coffee: out-of-home consumption of coffee will not recover quickly
Cocoa: weaker dollar provides only temporary support for cocoa prices