Cocoa Futures

Cocoa is obtained from the beans of the cocoa tree and is the raw material of chocolate and cocoa products. After the beans are fermented and dried, they are processed into cocoa liquor, cocoa butter and cocoa powder. Production is concentrated in tropical regions around the equator; Ivory Coast and Ghana are the main sources of supply, and Ecuador and Indonesia are also among the significant producers.

Cocoa futures trade on ICE exchanges. The value on Lzzo.com is based on front-month data (CC=F), obtained via Yahoo Finance, for the cocoa contract traded on ICE Futures U.S. and quoted in US dollars per ton. A separate cocoa contract denominated in pounds sterling also trades in London.

Weather in West Africa, plant diseases, harvest yields, the sales policies of producing countries and chocolate demand are the main factors determining the cocoa price. The concentration of supply in a few countries can at times cause sharp price swings. The futures price is not directly the same as the shelf price of chocolate and confectionery products.