World cocoa prices set a record, up by over 3 times last year

The price of cocoa futures for May delivery on the Intercontinental Exchange (ICE) in New York soared to $ 10,030/ton in the trading session on March 26 before dropping to about $ 9,622/ton. This is the first time the price of this commodity has exceeded the mark of $ 10,000/ton.

According to CNBC, cocoa prices have skyrocketed more than 200% in the past 3 months from $ 4,280/ton in December 2023 and more than 3 times compared to the same period in 2023, when the price of this item was at $ 2,902/ton.

Experts believe that the sudden increase in the price of this product is due to crop failures in West Africa when the two largest cocoa-producing countries, Ivory Coast and Ghana have been grappling with extreme climate change and epidemics for months.

"Since Ivory Coast and Ghana supply about two-thirds of global cocoa production, any changes in production in these countries tend to have a dramatic impact on the cocoa market", the International Cocoa Organization (ICCO) recently warned.

Cargo arrivals at ports in Ivory Coast and Ghana have decreased by 28% and 35% respectively since the beginning of the season compared to the same period last year, according to an ICCO report in February 2024.

Global cocoa supply is expected to decrease by 8% in the 2023-2024 crop year compared to the previous year, according to data from analysis and consulting firm GlobalData. Meanwhile, some chocolate manufacturers have warned that rising cocoa bean prices could force them to increase the market prices of their products.