Cocoa prices rose to a red-hot sizzle this Valentine's Day — but they could soon be due for a reckoning, according to Citi.
Cocoa futures finished 25.5% higher in February, cinching their biggest monthly gain since November 2001, when they rose 31.66%.
Cocoa supply might increase on one side of the equation, but Doshi cautioned that demand might also be weighed down by consumption risks.
Even against this backdrop, Doshi highlighted that it might take some time before cocoa prices completely retreat off their record highs.
"Our base case remains that cocoa terminal prices will enter a bear market by end-2024, off a historically rich nominal price area."
Persons:
Aakash, Doshi, haven't, Chocolate, Hershey, — CNBC's Michael Bloom, Gina Francolla
Organizations:
Citi, Wall Street, Nestle
Locations:
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