World: Cocoa quotations reach the highest level in four decades and chocolate prices should rise

Published Jul 5, 2023

Tridge summary

Cocoa futures prices are at their highest level in 40 years, leading to an increase in chocolate prices. The rise in prices is due to strong demand, limited global supply, and unfavorable weather conditions in West Africa, the main cocoa producing region. The high prices are putting pressure on chocolate producers' profitability and causing buyers to cancel orders and be cautious in their purchases.

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

Original content

Cocoa futures are at their highest level in nearly four decades, which is likely to be reflected in already high chocolate prices. On the London Stock Exchange (ICE Futures Europe), cocoa accumulates an increase of more than 36% in 2023, with the commodity being one of the best investments in the 1st half. This performance has been driven by strong demand, tighter global supply and unfavorable weather forecast in West Africa, the main producing region. Highest prices in the US According to market research firm Circana, the unit price of chocolate bars in the United States has risen by more than 20% since 2021. In the past, large chocolate producers have responded to high cocoa prices by downsizing bars, substituting cocoa butter for palm oil or other ingredients, and in many cases driving up prices. “This is going to put pressure on chocolate producers in terms of profitability,” said Pascal Baltussen, head of operations for Tony's Chocolonely, a chocolate company that specializes ...

Source: SNA