finance cost too high and they accumulate over 2 billion expensive bean mayb including future contract or current contract .if cocoa bean price drop sharply in few month later ,they mayb facing sum big lose in future contract .if US drop into ressesion ,cocoa bean and chocolate material demand may drop and effect the QR result..they use many high interest rate bank loan to do hedging like gambling,pray cocoa price drop slowly and slowly ...if drop sharply .GCB may facing finance crisis

Cocoa futures traded above $9,550 per tonne, holding close to their highest since mid-June, driven by persistent worries about tight supply. There are concerns that dry weather in the key producing regions of West Africa may potentially curb the global cocoa output. Forecaster Maxar Technologies reported that Ivory Coast and Ghana, major cocoa producers, have seen a significant decrease in rainfall over the past month, leading to below-normal soil moisture and limited crop growth.

Chee Wei Liew ,their business model Hedging is a mst ,jst like Airasia oso hedging in oil ..in this adnormal cocoa bean price GCB not in comfort zone ,every single step mst be very becareful .singapore Hin Leong Trading as a oil trading giant oso die in mistake in Hedging oil..gcb more prefer cocoa bean price back to normal but not in this adnormal expensive .

Agreed.... it is balancing act
Cannot fully hedge but at high price and low supply.. company do hedge to avoid supply disruption
They need to set limit to hedging.... let's see next few days / weeks on coca price n future

Cocoa futures continued to climb, nearing the $10,000 per tonne mark and reaching their highest closing levels since mid-June. This increase is driven by concerns over excessive dryness in West Africa, a major cocoa-producing region, which could affect global supplies. According to forecaster Maxar Technologies, both Ivory Coast and Ghana, the top cocoa producers, have experienced a "significant decrease in shower activity" over the past month, resulting in below-normal soil moisture and stunted

Cocoa prices to head higher by end-2024 amid record deficit: Reuters poll

LONDON (Reuters) - Cocoa prices are expected to continue heading higher this year due to persistent supply shortages that will leave them at more than double last year's levels by the end of 2024, a Reuters poll of 12 traders and analysts showed on Wednesday.

London cocoa was seen ending the year at 7,600 pounds a metric ton, up 40% from Tuesday's close and 125% higher than at the end of 2023, according to the poll'