Cocoa, coffee prices see remarkable surge in initial 9 months of this year
Date
10/6/2024 4:50:32 AM
(MENAFN) Cocoa prices experienced a remarkable surge in the first nine months of the year, skyrocketing by 84 percent to reach a peak of USD11,722 per ton. This dramatic increase has been driven by a combination of factors, including supply disruptions, adverse weather conditions in key producing regions, and heightened demand for cocoa products, particularly from the confectionery industry. The upward momentum in cocoa prices reflects the growing global appetite for chocolate and related goods, which has contributed significantly to the soaring prices observed throughout the year.
Similarly, coffee prices also saw significant gains, climbing 43.5 percent to hit their highest level since September 2011, at USD2.7505 per pound. This rise in coffee prices can be attributed to several factors, including supply chain challenges, adverse climatic conditions affecting coffee-producing countries, and increased consumer demand for specialty coffee. As with cocoa, the coffee market has been influenced by fluctuations in global supply and the enduring popularity of coffee as a daily staple for many consumers.
In contrast to the bullish trends observed in cocoa and coffee, sugar prices posted a more modest increase of 9.2 percent. The rise in sugar prices reflects ongoing demand coupled with some production challenges in major sugar-producing countries. The sugar market has remained relatively stable compared to other agricultural commodities, but it has benefited from a favorable market environment characterized by increasing consumption.
On the other hand, cotton prices faced a decline, falling 9.1 percent on the Intercontinental Exchange. The drop in cotton prices can be linked to a variety of factors, including shifts in global demand, competitive pricing from synthetic fibers, and uncertainties regarding crop yields due to fluctuating weather patterns. As a result, while cocoa and coffee prices have surged, cotton has struggled to maintain its footing in a challenging market landscape.
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