World: Cocoa rises by 200% and becomes the commodity with the highest increase in 2024

Published 2024년 12월 23일

Tridge summary

In 2024, the global cocoa market has experienced a significant price surge of nearly 200%, driven by a combination of factors including faltering production in West Africa, severe weather, and a virulent crop disease. This tight supply and fragile trade environment have led to a supply shortage, with many traders withdrawing from the market and chocolate makers hoarding new stocks. The market has seen wild price swings, with cocoa prices reaching an all-time high of nearly $13,000 a tonne, outpacing even Bitcoin. The situation is further complicated by limited futures selling by trading participants and severe weather conditions, raising concerns about the ability to fulfill contracts and the potential for price spikes. Despite challenges, Ivory Coast, the top cocoa producer, has seen a 33% increase in shipments compared to last season. The high prices have also led to a surge in the cost of cocoa butter, a key ingredient in chocolate, but weakening demand has helped limit price gains for next year.

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

Original content

Cocoa has outpaced all major commodities in 2024, and there is little sign that the tight supply and fragile trade environment that have driven its near-vertical trajectory will be resolved quickly. Prices have nearly tripled, or nearly 200%, as faltering production in West Africa, the world’s largest growing region, has caused a massive supply shortage. Many traders, hurt by rising costs to maintain their positions, have fled the market as the rally has gathered momentum, and chocolate makers have been on the sidelines, hoarding new stocks in a bid to lock in lower prices. But severe weather and a virulent crop disease have raised fresh concerns about this season’s harvest, sending New York futures to an all-time high of nearly $13,000 a tonne this week alone. But in a market that could continue to recover, some chocolatiers are no longer waiting to lock in prices. Already thin futures liquidity is also contributing to the wild swings, sending cocoa gains outpacing even Bitcoin. ...

Source: Mercado Do Cacau