Sterling rally sends cocoa prices to multi-year lows

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Consumers might want to thank Theresa May as cheaper chocolate looked to be on the horizon, as the jump in the pound sent cocoa to multi-year lows.

Cocoa, the key ingredient for chocolate, hit a fresh 4-year low of £1,464 a tonne in London, while in New York, it plummeted to a new 10-year low of $1,851. Cocoa traded in London is priced in sterling and the rise in the UK currency on the general election announcement this week has led to heavy selling.

Worries about supplies in the Ivory Coast, the leading producer, also weighed on cocoa prices which fell more than 3 per cent for the day.

Eric Sivry at commodities broker Marex Spectron said: “The concept of ‘doom and gloom’ has rarely been so omnipresent in cocoa,” although chocolate lovers may have a somewhat different reaction to the fall in the cocoa price.

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