Cocoa prices have surged in 2024, reaching a record $11,938 per metric ton, primarily due to supply tightness and adverse weather in West Africa, which produces about 75% of the world’s cocoa. The market is facing its largest deficit in over 60 years, exacerbated by crop failures in Ivory Coast and Ghana, leading analysts to predict continued volatility. ING strategists noted that cocoa and coffee markets are under pressure, with prices likely remaining high to manage demand. Rabobank emphasized the risks in commodity trading, pointing out cocoa’s obscure nature and the historical highs seen in coffee prices.
