Cocoa Prices Reach Historic Highs Due to Supply Shortages
Cocoa prices, after a decline, are rapidly rising again due to concerns about supply shortages, pushing them to historic highs in April.
According to Bloomberg, cocoa futures prices in New York rose by 4.2% to $9,798 per ton. This is more than 40% higher than the previous month.
Poor weather conditions, diseases, and a shortage of fertilizers are putting pressure on cocoa production in Cote d’Ivoire and Ghana — the two largest exporters. The negative situation in West Africa, the main cocoa growing region, pushed cocoa bean prices to record levels in April.
Although prices have decreased since then, some analysts predict that they will remain high due to a global cocoa bean deficit.
Cocoa stocks in US ports are also decreasing: as of June 5, the number of bags decreased to 3.56 million, the lowest level since February 2021.
