Here’s a round up of what happened in the ag market last week. 

Cocoa frenzy 

Cocoa prices are skyrocketing due to a third consecutive year of shortages caused by poor harvests in West Africa. The supply crunch, exacerbated by climate change and disease, has sent shockwaves through the chocolate industry. 
Futures markets have gone haywire as cocoa prices have more than doubled in just three months. Bloomberg reports that this is straining traders, processors, and chocolate makers, with some analysts fearing company failures reminiscent of the recent European energy crisis.

The cocoa deficit is expected to reach 500,000 tons this season, according to Barry Callebaut AG, the largest maker of bulk chocolate. The extreme volatility has caused some West African processing plants to slow down or even shut their doors, as reported by Reuters. 

The ICE has taken measures to tame the rally and maintain orderly trading, such as increasing margins and reducing the threshold for disclosing position information.

Other news:

Dry weather aids Argentina harvest: The Buenos Aires Grains Exchange reports that dry weather following heavy March rains in Argentina's main agricultural areas will aid the beginning of soy and corn harvests. Despite previous delays due to muddy fields, recent dry conditions and minimal expected rainfall have allowed harvesting to commence, with early progress made in soy and corn crops.

Acreage cut boosts corn prices: USDA report last Thursday shows farmers reducing corn acreage, sparking a market rally. 

Australia wheat crop to double: Government forecasts record wheat harvest, easing global supply concerns and potentially impacting wheat prices.  The surge in production follows last year's drought and could offer relief to buyers facing record-high prices.

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