After a historic high, cocoa prices register a correction in the global market

Published 2024년 12월 23일

Tridge summary

The cocoa market experienced a slight devaluation on Monday, with futures contracts for March 2025 traded at US$ 11,900 per ton, a 0.45% drop. This is due to the market's attempt to stabilize prices after a year of significant appreciation, which has challenged the chocolate industry, especially in the US and Europe, due to high raw material costs. Despite the recent drop, cocoa prices are expected to continue to rise in 2024 due to adverse weather conditions in West Africa, which have severely affected production. The market's extreme volatility and low liquidity have led to record high prices, putting pressure on chocolate makers. The market's instability is particularly impacting US and European industries, with companies rushing to purchase raw materials. The market's stability is tenuously balanced, with factors such as weather conditions, crop diseases, and production deficits potentially causing further volatility.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

By: Claudemir Zafalon After days marked by sharp increases and historical records, the cocoa market registered a slight devaluation this Monday, with futures contracts for March 2025 being traded at US$ 11,900 per ton, a drop of 0.45%. This decline reflects the market's effort to stabilize prices after a period of strong appreciation, which brought challenges to the chocolate industry, especially in the United States and Europe. These markets, which experience high seasonal demand as Christmas approaches, are facing difficulties due to the impact of high prices for the raw material, as highlighted by an analysis by the Barchart website. Despite the recent drop, the overall scenario for cocoa in 2024 continues to be marked by an impressive upward trajectory. Prices almost tripled throughout the year due to production severely affected by adverse weather conditions in West Africa, a region that concentrates around 70% of world production. In addition, low liquidity in the futures ...

Source: Mercado Do Cacau