The prices of sugar, coffee and cocoa have been more volatile during the first quarter of 2020 and coronavirus virus is not the only reason behind stronger price volatility in these markets. Casper Burgering, a Senior Economist at ABN Amro, analyzes the outlook for these commodities.
Key quotes
“We are dealing with a highly dynamic sugar market, which means that price volatility will also remain high for the time being.”
“With the further spread of the coronavirus in Latin America, stress on the supply chain will intensify. This means that price volatility of coffee will remain high.”
“Many cocoa bean grinders in Europe and the US have sufficient supplies and are therefore not eager to purchase more beans. This will keep the price relatively low in the coming weeks.”
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