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Cocoa prices surge to record high amid supply concerns, weather challenges
(MENAFN)
Cocoa prices soared to an all-time high of nearly USD13,000 per ton on the Intercontinental Exchange, reflecting ongoing volatility in various commodities, particularly within the agricultural sector, following President-elect Donald Trump's victory in November.
Since the start of 2024, cocoa prices have surged by over 200 percent, peaking at USD12,931 amid growing concerns about supply shortages.
Weather conditions and climate patterns have played a significant role in driving price changes for agricultural goods. Cocoa prices have been particularly impacted by adverse weather in West Africa, threatening crop yields, while global cocoa inventories have dwindled.
Reduced cocoa output in the Ivory Coast and Ghana has been a major factor behind the record-breaking price hike. Experts predict that the 2024-25 season will see a global cocoa deficit.
In response, the European Union approved a one-year delay in implementing new regulations aimed at blocking imports of goods linked to environmental destruction, including cocoa, soy, beef, palm oil, wood, and coffee.
Additionally, leading cocoa producers in the Ivory Coast and Ghana have suspended operations due to rising seed costs, exacerbated by extended droughts and heavy rainfall, which have further disrupted supply. The cocoa swollen shoot virus disease (CCSVD) has also significantly damaged crops and hindered production.
Cocoa prices soared to an all-time high of nearly USD13,000 per ton on the Intercontinental Exchange, reflecting ongoing volatility in various commodities, particularly within the agricultural sector, following President-elect Donald Trump's victory in November.
Since the start of 2024, cocoa prices have surged by over 200 percent, peaking at USD12,931 amid growing concerns about supply shortages.
Weather conditions and climate patterns have played a significant role in driving price changes for agricultural goods. Cocoa prices have been particularly impacted by adverse weather in West Africa, threatening crop yields, while global cocoa inventories have dwindled.
Reduced cocoa output in the Ivory Coast and Ghana has been a major factor behind the record-breaking price hike. Experts predict that the 2024-25 season will see a global cocoa deficit.
In response, the European Union approved a one-year delay in implementing new regulations aimed at blocking imports of goods linked to environmental destruction, including cocoa, soy, beef, palm oil, wood, and coffee.
Additionally, leading cocoa producers in the Ivory Coast and Ghana have suspended operations due to rising seed costs, exacerbated by extended droughts and heavy rainfall, which have further disrupted supply. The cocoa swollen shoot virus disease (CCSVD) has also significantly damaged crops and hindered production.
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