Is cocoa good to invest in?
Cocoa is a luxury commodity and a crucial ingredient in many of life’s finer things: from sweets to pharmaceuticals, to various cultural dishes. Its popularity makes it a prominent asset on the stock market, but supply problems, environmental and political issues can sometimes make it an unstable investment. Côte d’Ivoire (the Ivory Coast) is the largest producer of cocoa in the world, producing over 2 million tons a year. About 75 percent of the land in Côte d’Ivoire is suitable for growing crops, and almost half of its citizens work in agriculture, including many children.One of the key causes of the cocoa crisis is weather having a negative impact on yields. The process of cocoa production requires very specific climatic conditions.Global Hotspots for Cocoa Production With 2. Côte d’Ivoire is the world’s largest producer, accounting for a third of the global total.Poor West African Harvests (Climate Change Impacts) 70% of global cocoa comes from West Africa — especially Côte d’Ivoire and Ghana. Extreme weather patterns (heavy rains, droughts, heatwaves) have slashed crop yields.
Why are cocoa futures so high?
Cocoa prices have soared in recent years, hitting record highs amid adverse weather conditions, pest outbreaks and supply tightness in West Africa, which produces around three-quarters of global supply. As of February 2025, cocoa prices have repeatedly hit record highs since 2024, after consecutive growing seasons in West Africa were negatively impacted by weather and disease.The highly volatile price of cocoa declined over 40% in global markets as drought concerns eased in West Africa and harvest increases. The ton price of cocoa dropped below $7,000, declining more than 40% since the end of 2024. Estimates of increased supply and weakening demand led to sharp declines.Cocoa Futures Hit New 2024-Low On the demand side, upcoming Q3 cocoa grind data for Europe, North America, and Asia is expected to show year-on-year declines, following three consecutive quarters of falling cocoa bean processing across all regions.Global demand for cocoa is fast rising—and producers are struggling to keep pace. It can take an entire year for a cocoa tree to produce the cocoa in just half a pound of chocolate. Older trees also yield less cocoa, and most of the world’s cocoa plantations are well past their peak production years.The shift put huge strains on industry stakeholders and led to inevitable price increases for customers at the checkout. However, improving conditions through spring 2025 saw global cocoa production recovering and prices beginning to fall.
What is the price of cocoa in 2025?
On 4th August 2025, Government announced a producer price of cocoa for the 2025/2026 season at GHS3,228. GHS51,660 (US$5,040) per tonne, representing 70% of the average Gross FoB price of US$7,200 per tonne. Key takeaways. Cocoa prices are falling on the back of softer industrial demand as manufacturers grapple with higher costs and tighter margins. On the supply side, cocoa production is expected to ramp up during the 2025/2026 season as weather conditions improve and new plantings in Ecuador reach maturity.The cocoa crisis has brought with it widespread uncertainty among producers, put pressure on supply, and even boosted the development of the market for cocoa alternatives. Prices have stabilised since the heights of the crisis, but they are still far higher than they were before it began in 2024.Gov’t announces cocoa price increase for 2025/2026 season, farmers to get GH₵58,000 per tonne. The government has announced an upward adjustment of the producer price of cocoa, offering a reprieve to farmers for the 2025/26 season.Looking ahead to 2024/25, ICCO forecasted a global cocoa surplus of 142,000 MT on February 28, 2024, marking the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7. MMT.
Is cocoa expected to rise?
Looking ahead to 2024/25, ICCO forecasted a global cocoa surplus of 142,000 MT on February 28, 2024, marking the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7. MMT. Over the past month, Cocoa’s price has fallen 18. CFD) that tracks the benchmark market for this commodity. Historically, Cocoa reached an all time high of 12906 in December of 2024.Firstly, demand has weakened significantly, especially in Europe, where cocoa processing (or “grind”) dropped by 7. COVID-19 downturn in 2020. This reflects reduced consumer appetite for chocolate and related products.Historically, Cocoa reached an all time high of 12906. December of 2024. Cocoa – data, forecasts, historical chart – was last updated on October 19 of 2025.
What are the risks of cocoa futures?
Climate Risks Shape Cocoa Futures Increasing climate risks to production means greater costs for buyers. Forced to pay more for cocoa, chocolate companies have adopted various strategies to maintain profitability — overall, passing the price on to consumers. Should I invest in cocoa? Exposure to cocoa may suit traders seeking to engage with commodity market dynamics rather than holding long-term equities. US Cocoa CFDs and Cocoa UK CFDs allow speculation on price moves without owning the underlying commodity, but they track futures prices and require margin.Cocoa futures are a part of the commodities futures group traded on the InterContinental Exchange in the U. S. Trading is mainly weather and politically-based.There are currently three places where cocoa futures contracts can be exchanged: ICE Futures U. S. New York), ICE Futures Europe (London) and CME Europe (London).
What is the price prediction for cocoa futures?
Cocoa is expected to trade at 5670. USD/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4876. Cocoa price prediction: Technical overview US Cocoa (CCc1) trades at $7,398. UTC, below its 20/50/100/200-DMAs at ~7,796 / 8,038 / 8,700 / 9,233. RSI(14) is 42, signalling neutral momentum. The nearest resistance is at 8,529; a daily close above could bring 9,348 into view.