Cocoa beans could see the biggest price gain of any global asset in 2024, outpacing Bitcoin and the US stock market, according to the media.
The cocoa prices have more than doubled this year, hitting a record $12,931 per tonne on December 18, fueled by the largest 60-year deficit in the 2023/2024 crop year, according to the ING, a global financial institution.
March futures closed Friday at $11,954 per tonne – a near threefold increase since January, compared to Bitcoin's 2.3 times increase and the stock market index Standard and Poor's 500 under a 25% gain.
Adverse weather in Cote d'Ivoire, the world's leading cocoa producer, and record ocean temperatures are severely impacting West African harvests. The International Cocoa Organization forecasts a 478,000-tonne deficit for 2023/2024, with production down 13.1% and year-end stocks down 26.8%.
Despite these price increases, strong consumer demand for chocolate and coffee is expected to continue. Experts predict further price increases due to the combination of poor weather and typical pre-holiday demand surges.