Cocoa exchange prices hit a record high amid worsening crop forecasts in West Africa, Bloomberg writes. This could lead to higher costs for chocolate producers, which would affect retail prices, the agency warns.
Author:
https://rb.ru/author/bmuzichenko/
Subscribe to RB.RU on Telegram
Futures for March of cocoa beans on the ICE exchange in New York on December 16 increased by 4.8%, to 11.8 thousand dollars per ton. In 2024 alone, the cost of cocoa will have almost tripled, which has already forced confectionery manufacturers to increase prices, Bloomberg notes.
Cocoa prices rose earlier in the year as weak harvests in West Africa caused a third consecutive supply shortage, he said. The price rally has resumed as bad weather continues to threaten agricultural production, limiting the chances of a recovery in already low global stocks. The situation is aggravated by problems that have already existed in the sector for a long time, such as crop diseases and low wages for farmers, the agency writes.
Previously, the founder of the financial company Andurand Capital Management, Pierre Andurand, stated that the record increase in cocoa prices is due to low yields caused by fertilizer shortages and the spread of a virus that destroys crops.
The increase in the cost of cocoa is seen in the context of a rapid increase in coffee prices. In mid-December, CNBC, citing analysts, reported that on Tuesday, December 10, March Arabica futures rose to $3.48 per pound (0.45 kg). This was the highest level since 1977, when snow destroyed large areas of Brazilian plantations.
Author:
Bogdan Muzychenko
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
