Cocoa prices hit a new record at the end of this week when they broke through the $6,000 per ton mark on the New York Stock Exchange. In addition, the commodity also recorded a record price on the stock exchange in London. They are being driven up by the restriction of supply to the market, behind which is unfavorable weather in West Africa, a key region for the production of this commodity. TASR informs about it based on the AFP report.
On the commodity exchange in New York, the price of cocoa reached almost 6,030 USD (5,597.85 euros) per ton on Friday (9/2), which represents a new all-time high. A new record was also set in London, when the price of the commodity reached 4,786 pounds (5,601.59 euros) per ton. It thus closed an overall record week, when new historical highs fell practically every day.
Soaring cocoa prices have raised concerns about the implications for chocolate prices at a time when the world’s largest economies are already dealing with inflation. “Behind the continued increase in prices is the greater than originally expected deficit on the cocoa market in the 2023/2024 season. The problem of high demand and low supply has thus persisted for the third year in a row, while the reason for the current situation is the extremely unfavorable weather in West Africa,” noted Saxo Bank analyst Ole Hansen about the record cocoa prices. This area accounts for approximately 70% of the global cocoa supply.
The West African countries of Ghana and Ivory Coast are the largest producers of cocoa in the world. At the end of last year, both countries were hit by heavy rains, which were later replaced by drought caused by the El Niño climate phenomenon. This causes extreme droughts in some areas and floods in others.