Global cocoa bean prices have reached record levels

Cocoa Bean

Cocoa Products

United States

Ghana

Market & Price Trends

Published Mar 28, 2024

Tridge summary

The price of cocoa beans has hit a record high of $10,080 per ton as of March 26, primarily due to reduced harvests in key West African nations, marking a third year of supply shortages. This surge, which saw prices increase by 60% in March and more than double since the year's start, is attributed to factors such as low farmer incomes, financial market pressures, and new EU regulations potentially tightening supply further. Ghana's financing issues have compounded the problem, forcing reliance on external funds to compensate farmers. This scenario is expected to drive up chocolate prices, with some manufacturers already adjusting prices, product sizes, or ingredients in response.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Against the backdrop of a possible supply shortage, the price of cocoa beans for the first time in history exceeded the level of $10,000/t, breaking the previous record on February 27, – reports Bloomberg. On March 26, cocoa bean futures rose 4.5% to an all-time high of $10,080/t. Low harvests in major West African countries are exacerbating supply shortages, which have been observed in the market for the third year in a row. Low incomes for cocoa farmers could lead to reduced supply. In addition, financial market pressure is mounting as traders sell futures to hedge against physical inventories. After the entry into force of new EU regulations aimed at limiting the sale of products obtained by cutting down forests, the situation may worsen, and the supply of cocoa for chocolate producers in the EU may decrease. Cocoa futures in New York rose for a fourth straight day on news of financing problems in Ghana, the world’s second-largest producer. The poor harvest has left the country ...

Source: UkrAgroConsult