(MENAFN) Cocoa prices have surged over 20 percent in May after experiencing significant drops earlier this year, now rising above USD11,000 per ton.

Initially, the price plummeted more than 34 percent, falling to USD7,613 per ton before gradually recovering some of the losses.

Despite a 5 percent drop compared to the end of 2024, the price rebounded by 24 percent from April, reaching as high as USD11,280 this month.

The decline in demand for cocoa occurred as its price surpassed production costs, while concerns about a potential oversupply also contributed to the falling prices.

However, cocoa faced pressure due to an improved supply outlook, with increased exports of cocoa from Nigeria alleviating concerns about supply shortages.

Statements from executives at Hershey’s and Mondelez International, highlighting the negative impact of high prices on demand, further affected the pricing trend.

In May, cocoa prices rose sharply, fueling expectations that new price records might be set.

Last year, cocoa prices reached a peak of USD12,931 per ton.

The slowdown in cocoa exports from the Ivory Coast reignited concerns over supply shortages, while weather-related issues in West Africa further drove prices upward.

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