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Overview of cocoa pods on a tree in Ebebda on November 30, 2024. Cocoa is one of Cameroon’s main export products.
Daniel Beloumou – The Best of Daniel Beloumou | Afp | Getty Images
It has the price of the essential ingredient of chocolate he went up this year, prompting analysts to issue new warnings about extreme price volatility.
The future of cocoa New York March delivery traded up 1% at $11,938 a metric ton by 7:10 a.m. on Tuesday, hitting another record high.
The benchmark contract, which hit an all-time intraday high of $11,925 in the previous session, is up more than 180% year-to-date.
It comes amid renewed concerns about poor weather conditions and tight supplies in the West African region three quarters of world cocoa production.
Strategists at the Dutch bank ING he said The continued tightness of the cocoa and coffee markets, coupled with weather uncertainty, means that prices are likely to remain volatile next year.
The global cocoa market recorded its biggest deficit in more than 60 years in the 2023-2024 marketing year, ING said in a research note. the data International Cocoa Organization (ICCO). He attributed the shortfall to failed harvests in Ivory Coast and Ghana, the world’s largest cocoa producers.
An employee prepares a flight of chocolate drinks for a customer at Katherine Anne Confections, an artisan chocolate shop and cafe, on February 2, 2024 in Chicago, Illinois.
Scott Olson | Getty Images News | Getty Images
“While the outlook for the 2024/25 marketing year is looking better, there are still concerns about weather developments in West Africa and what it means for production this season,” Warren Patterson, head of commodities strategy at ING, said in a published note. December 11
“Today, forecasts show that production in West Africa, which accounts for more than 70% of global production, will increase. However, there are risks due to the recent bad weather,” he continued.
Looking ahead, Patterson said prices are likely to remain historically high next year, which will be necessary to “keep a lid on demand.”
“One of the funnest merchandise”
like cocoa coffee prices have It also increased in 2024analysts recently warned that it would take years for one of the world’s best-selling commodities to recover.
Rabobank’s Carlos Mera highlighted cocoa and coffee as commodities of interest to professional traders.
“(Cocoa) is one of the more obscure commodities, so I wouldn’t advise anyone who doesn’t know to get into it, but it’s definitely one of the more fun commodities to explore,” Mera told CNBC’s “Squawk Box Europe“Tuesday.
“And then coffee, we have another point. Coffee has reached its highest price since 1977 (and) depending on the contract you look at, it may be a historical record and also record robusta prices… It’s quite an interesting situation,” he added.
