In a significant development, cocoa bean prices have surged past the $10,000 per ton mark for the first time in history. The commodity, which forms the backbone of chocolate production, has once again hit an all-time high, fueled by growing fears of a supply shortage.
The meteorological landscape plays a pivotal role in this unprecedented price surge. The Ivory Coast, renowned as the world’s leading cocoa supplier, is grappling with unusually hot weather. The scorching temperatures pose a direct threat to the cocoa bean harvest, raising concerns among traders and investors alike.
On Tuesday, May cocoa bean futures traded on the New York market soared by 3.9%, reaching an impressive $10,030 per metric ton, increasing 2.4 times since the beginning of the year, according to data from ICE Futures.
This remarkable ascent represents a staggering 2.4-fold increase since the beginning of the year. Analysts attribute the surge to a combination of supply-side worries and robust demand dynamics.
At the same time, demand for cocoa and chocolate remains high in the world's major economies.