Expand chart
Data: Investing.com; Chart: Axios Visuals

Investors aren't buying the idea of a potential Organization of Cocoa Exporting Countries, and cocoa prices sank late last week after rallying to an 11-month high.

Driving the news: Ghana and Ivory Coast reached an agreement not to sell cocoa for less than $2,600 a ton for the harvest that will begin in October 2020. The two African nations account for 60% of the world's cocoa production. That sent cocoa prices to $2,552 Wednesday.

  • But investors aren't convinced the agreement will hold and Ivory Coast's strong planting season this year has markets convinced the world will be flush with enough cocoa to drag prices lower.
  • Cocoa prices were well above $3,000 a ton for most of the period from 2014 to 2016, but have fallen since.

What's next? Ivory Coast and Ghana say they are setting the price floors to improve pay in the industry, but to make a real impact, Ivorian President Alassane Ouattara and Ghana's Nana Akufo-Addo should focus on processing cocoa, rather than just growing it, Reuters' Ed Cropley writes for Breaking Views.

  • "Of the $100 billion spent annually on chocolate, the African Development Bank reckons the continent keeps just $5 billion. As with other commodities like diamonds or crude oil, the labour-intensive work happens elsewhere. According to International Cocoa Organization figures, Ivory Coast ground just 559,000 tonnes of beans last year less than the Netherlands.
  • "Building a processing sector requires lots of investment and expertise, but Indonesia shows what is possible. In 2010, 80% of its 500,000 tonnes of cocoa exports were beans, according to an analysis by Fitch Solutions. In 2017, that proportion had fallen to 5% as production of cocoa butter, paste and powder soared. Making a similar switch in West Africa really would be sweet."

Go deeper: The staggering impact of falling coffee prices

Go deeper

Updated 10 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 11,520,461 — Total deaths: 535,453 — Total recoveries — 6,231,052Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 2,911,888 — Total deaths: 130,090 — Total recoveries: 906,763 — Total tested: 35,512,916Map.
  3. Public health: Case growth outpacing testing in hotspots.
  4. States: West Virginia becomes latest state to mandate facial coverings in public.
  5. Politics: Cuomo accuses Trump of "enabling" the coronavirus surge — Sen. Chuck Grassley opts out of attending GOP convention over coronavirus concerns.

Amy Cooper charged for calling police on Black bird-watcher in Central Park

A white woman who called 911 to accuse a Black man of threatening her life in Central Park in March faces misdemeanor charges for making a false report, the Manhattan District Attorney's office announced Monday.

The big picture: The May 25 incident, which was caught on film, was one of several viral episodes that helped catalyze massive Black Lives Matter protests against the police killings of Black people in the U.S.

McEnany defends Trump's tweet about Bubba Wallace and Confederate flag

White House press secretary Kayleigh McEnany said during a press briefing Monday that President Trump "was not making a judgment one way or the other" about NASCAR's decision to ban the Confederate flag and that his attack on Bubba Wallace was an attempt to stand up for NASCAR fans who are unfairly painted as racist.

The state of play: McEnany was repeatedly grilled by reporters over the president's inflammatory tweet, in which he demanded that NASCAR's only Black driver apologize after the FBI determined that he was not a target of a hate crime and claimed that ratings had dropped after the sport banned the Confederate flag at its events.