Cocoa market rises over $10,000 amid poor crops

McDonald's to sell Krispy Kreme doughnuts in U.S.

Krispy Kreme shares soared the most since July 2021 after McDonald's Corp. agreed to bring the chain's doughnuts to restaurants across the U.S.

In the burger giant's latest effort to attract diners for breakfast and all-day snacking, Krispy Kreme's sugary pastries will first become available at some McDonald's later this year, the companies said in a statement Tuesday. A nationwide rollout is expected by the end of 2026.

Krispy Kreme shares jumped as much as 27% in New York trading Tuesday.

Adding Krispy Kreme to its menu gives McDonald's “a chance to unlock new business opportunities in the breakfast category and throughout the day,” said Tariq Hassan, the chief marketing officer for McDonald's USA.

The chains tested diners' appetite for the treats in 160 McDonald's restaurants in two Kentucky cities, according to the statement, and results “exceeded expectations.” The lineup will include three of Krispy Kreme's most popular doughnuts — the original glazed, chocolate iced with sprinkles, and chocolate iced “kreme” filled — which will be delivered to McDonald's locations every day.

For Krispy Kreme, the deal will more than double the locations where consumers can buy its products, Chief Executive Officer Josh Charlesworth said. McDonald's had more than 13,000 restaurants in the US as of Dec. 31. The doughnut chain has more than 14,000 “points of access,” according to the statement Tuesday.

Annual Apple developers conference set for June

Apple announced its annual Worldwide Developer Conference will kick off on June 10, when the company is expected to show off its latest AI advancements.

The conference, which is widely anticipated each year as a major showcase for Apple software news, will run

June 10 through June 14.

Although last year's WWDC focused on the unveiling of the Vision Pro mixed reality headset, which launched in stores in February, this year is expected to turn to Apple's AI efforts. The company is reportedly interested in licensing and building Google's Gemini AI engine, which includes chatbots and other AI tools, into upcoming iPhones and its iOS 18 features.

In a news release on Tuesday, the company said WWDC 2024 will also share software updates coming to the iPhone, iPad, Mac, Apple Watch, Apple TV and Vision Pro headset.

Cocoa futures surged above an unprecedented $10,000 a ton, extending a historic rally that's already seen prices double this year and which is raising the cost of chocolate.

The market is being rattled by poor crops in key West African growers that have put the world on course for a third straight annual supply deficit. The industry is grappling with the legacy of poor returns paid to cocoa farmers, and fears are mounting about being able to source enough beans.

As well as concerns about scarce physical supplies, pressures are also building in the financial market, where some traders have sold futures to hedge against physical holdings. But as they wait for the contracts to mature they need cash to meet margin calls on losses on derivatives, and in a rising market can be forced to close out short positions, helping to fuel the rally.

Futures jumped as much as 4.5% to $10,080 in New York on Tuesday — a level that seemed unthinkable only a few months ago.

“When we're at this price, it's hard to tell whether these prices are justified,” said Paul Joules, an analyst at Rabobank in London.

Compiled from Bloomberg and CNN reports.