(Bloomberg) — Cocoa futures gained after chocolate maker Lindt & Spruengli AG reported strong sales’ growth, indicating that demand remained resilient despite record prices.
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The most-active contract in New York rose as much as 3.3% to trade above $11,000 a ton before paring some gains. Trading in the cocoa market has been choppy and see-sawing prices have pushed a 30-day measure of volatility to its highest in four months.
The Swiss company’s sales growth beat analyst estimates, driven by strong performance in Europe. The firm said it gained market share and is well positioned to navigate the volatile cocoa market.
Lindt & Spruengli shares rose the most since April. Still, 2025 will continue to be challenging for the chocolate industry with cocoa prices at historic levels at the end of 2024, the company said. Price increases to offset those costs “will be further required in 2025.”
READ: Lindt Shares Jump on Sales Growth, Raised Guidance: Street Wrap
Cocoa futures surged to record highs last month on renewed fears about supply tightness in West Africa, where most of the world’s cocoa is grown. The rally has curbed liquidity to the lowest in over a decade, making the market vulnerable to wild price swings.
Meanwhile, raw sugar fell as much as 3.1% in New York on better-than-expected output in top growers Brazil and Thailand. The premium commanded by March futures over May futures dropped to 0.90 cent per pound, the lowest since September, reflecting easing supply concerns.
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