Stock Market News

Cocoa markets up 150% YoY, Hershey stock pressured


Cocoa markets up 150% YoY, Hershey (HSY) stock pressured

 

HSY
-0.76%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:


Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:


 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

NESN
-1.74%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:


Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:


 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

Analysts at Citi said in a note Wednesday that Cocoa markets are up 150% year-on-year and 60% year-to-date to a record price range of around $6,500/t. The rise has weighed on stocks such as Hershey Foods (HSY) and Nestle.

“Spot trading could spike to $7,000-10,000/t in the next 1-3m but then fade into the NH summer,” said Citi.

The Hershey Company (NYSE:HSY) shares are down 1% Wednesday, adding to the 5% decline over the last week. It is currently sitting at its lowest level since early January this year.

Meanwhile, Nestle, which is on the SIX Swiss Exchange, fell 1.7% on Wednesday and is down over 7% in the last week.

“Old-crop/new-crop curve backwardation has hit $800-1,000/t – extreme levels that should tell the industry to ration consumption and draw down product stocks,” added Citi.

Even so, the bank’s base case remains that cocoa terminal prices will enter a bear market by the end of 2024, off a historically rich nominal price area.

Source

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button