Cocoa Prices Hit New Record High Amid Extreme Volatility
Date
12/17/2024 3:26:23 PM
(MENAFN- Yolo Wire) The price of %Cocoa , the main ingredient in chocolate, is at a fresh all-time high amid extreme trading volatility in the commodity.
Cocoa futures trading in New York are currently at $11,938 U.S. per metric ton, a record high. Prices for cocoa are now up more than 180% year-to-date.
The latest spike in cocoa prices comes amid renewed concerns about adverse weather conditions and supply tightness in West Africa, home to three-quarters (75%) of the world’s cocoa production.
Analysts at ING bank (ING) are warning that persistent tightness in cocoa markets, coupled with weather uncertainty, is likely to keep prices elevated and volatile throughout 2025.
Crop failures in both Ivory Coast and Ghana, the world’s largest cocoa producers, is likely to see prices for the commodity continue to soar in coming months, says ING.
For consumers, the record price of cocoa is translating to higher costs for chocolate around the world.
Cocoa is hitting all-time highs alongside another key commodity, coffee beans. Prices for coffee beans are soaring due to poor weather and growing conditions in key markets such as Brazil.
Coffee bean prices are currently at their highest level in 50 years and flirting with record highs.
Analysts blame the current situation on climate change and many are warning of extreme volatility in trading volumes and prices for both cocoa and coffee beans right now.
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