Cocoa Grindings Crush Estimates, Chocolate Stocks Rise: Is Hershey A Buy?

What happened: A Bloomberg survey found third-quarter cocoa processing in Asia and Europe beat estimates, with Asian grindings up 29% and European grindings up 3.2% year on year. Chocolate stocks rallied over the past five days. Key numbers: Asian processing rose 29% to its highest quarterly level since 2011. Why it matters: Analysts cited by the content said the data adds to bullish sentiment, though West Africa weather and supply risks linger. CoBank noted the rebound partly reflects weak comparisons, and processing strength has yet to become a sustained demand recovery.

A Bloomberg survey found third-quarter cocoa processing in Asia and Europe beat estimates, with Asian grindings up 29% and European grindings up 3.2% year on year. Chocolate stocks rallied over the past five days.

Analysts cited by the content said the data adds to bullish sentiment, though West Africa weather and supply risks linger. CoBank noted the rebound partly reflects weak comparisons, and processing strength has yet to become a sustained demand recovery.