Cocoa leads the rise in commodities for the 2nd year in a row globally

Published Jan 1, 2025

Tridge summary

Cocoa and coffee are expected to be the top-performing commodities for the second year in a row in 2024 due to a global supply deficit, while steelmaking coal will perform the worst. In 2025, global trade tensions are likely to dominate the commodities market, with a potential for hefty tariffs if Donald Trump returns as President. The strong dollar and gold's appeal are expected to support precious metals prices, while ample supply could depress oil for the third year in a row. Cocoa prices have nearly tripled in 2024 due to a forecasted supply shortfall in West Africa, and Arabica coffee prices have reached a 40-year high due to severe drought in Brazil. China's housing crisis and slow economic growth have impacted the demand for crude oil and bulk metals. Iron ore prices in China are expected to continue to decline in 2025 due to increased supply and decreased demand for steel.

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

Original content

Cocoa and coffee are set to end 2024 as the top-gaining commodities for the second year in a row, taking advantage of a global supply deficit, while steelmaking coal will be the worst performer, hurt by China’s slow growth. Looking ahead, global trade tensions are likely to dominate the commodities landscape in 2025, with Donald Trump’s return to the White House threatening hefty tariffs, analysts said. A strong dollar and gold’s appeal as a safe haven for investors are likely to support precious metals prices, while ample supply could depress oil for a third straight year, they added. The bad news for chocolate lovers is that cocoa has nearly tripled in price over the course of 2024, far outpacing gains in other commodities. The contract hit a record high of $12,931 per metric tonne in New York earlier this month on forecasts of a fourth straight season’s supply shortfall in West Africa following dry weather. Major cocoa producers Ivory Coast and Ghana have suffered crop ...

Source: Mercado Do Cacau