Cocoa prices surge to nearly USD13,000 per ton on Intercontinental Exchange
Date
12/22/2024 3:35:01 AM
(MENAFN) Cocoa prices surged to nearly USD13,000 per ton on the Intercontinental Exchange, reaching a record high amid sharp fluctuations in commodity prices, particularly in the agricultural sector, following President-elect Donald Trump’s election win in November. Since the beginning of 2024, the price of cocoa has more than doubled, driven by supply concerns and reaching a peak of USD12,931.
Weather and climate conditions have played a significant role in the fluctuations of agricultural commodity prices, with cocoa being no exception. Adverse weather in West Africa, where most of the world’s cocoa is grown, has threatened crops, leading to fears of lower yields. Additionally, global cocoa stocks have been on the decline, further contributing to the price increase.
The weak cocoa production in key producing countries such as the Ivory Coast and Ghana has been a major factor behind the record-breaking cocoa prices. Experts predict that the 2024-25 season will experience a global cocoa stock deficit, intensifying the pressure on prices. Meanwhile, major cocoa factories in both countries have suspended production due to high seed costs, and prolonged droughts combined with heavy rains have raised further concerns about supply.
In Ghana, cocoa bean deliveries were expected to be delayed by up to 350,000 tons due to poor crop yields. Additionally, the cocoa swollen shoot virus disease (CCSVD) has impacted crops, exacerbating the production challenges faced by the region.
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