What is going on with cocoa futures?
Cocoa prices rallied sharply Tuesday as a decline in the dollar index (DXY00) prompted short covering in cocoa futures. Signs that improved weather conditions in West Africa have benefited the cocoa crops in the Ivory Coast and Ghana, the world’s two largest cocoa producers, are bearish for prices. Global Hotspots for Cocoa Production With 2. Côte d’Ivoire is the world’s largest producer, accounting for a third of the global total. For many reasons, the cocoa trade in Côte d’Ivoire and Western Africa has been controversial.Crushing diseases that purged cocoa crops in West Africa, combined with a difficult growing season — similar to the weather woes that spurred a spike in coffee prices — have driven up cocoa prices, and thus chocolate prices, over the past few years, with experts predicting they could rise even further.Côte d’Ivoire (the Ivory Coast) is the largest producer of cocoa in the world, producing over 2 million tons a year.Global cocoa demand is projected to decrease by almost 4. Surplus/deficit: net world crop (gross crop adjusted for 1% loss in weight) minus grindings.
How high will the cocoa price go?
A Price Surge Like Never Before In December 2024, cocoa prices reached an all-time high, surpassing $12,000 per metric ton—a staggering increase from around $2,000 in 2022. This historic surge is shaking up the chocolate industry, with major companies passing costs onto consumers. Despite hopes for a better crop in the 2024/25 season, cocoa prices look set to remain high in the medium term, hovering around the $6,000/tonne mark once a balanced market is reached. This could in turn impact the chocolate market, with confectionery prices likely to increase in 2025.Historically, Cocoa reached an all time high of 12906 in December of 2024. Cocoa – data, forecasts, historical chart – was last updated on May 5 of 2025.The global cocoa market is forecast to return to a surplus of 142kt in the 2024/25 season, however, there is uncertainty over this number as it is yet to be seen how the mid-crop develops.In Ghana, the government increased producer prices by 58. GH¢20. GH¢33. April 5.More recently, cocoa prices have been on an upward trend, partly due to climate-related challenges in West Africa and increasing production costs. Investors who timed their trades correctly during these price swings have been able to make significant profits.
What is the market trend in cocoa?
Cocoa decreased 2,217. USD/MT or 19. CFD) that tracks the benchmark market for this commodity. Historically, Cocoa reached an all time high of 12906 in December of 2024. Côte d’Ivoire is the world’s leading cocoa producing country. Around 2 million tonnes of cocoa are produced in this coastal country. That is approximately 38 % of the world’s cocoa. This industry accounts for 15 % of the country’s gross domestic product.There are many countries that produce cocoa in the world. But not all cocoas are the same. There are them of greater or lesser quality; suitable for making derivatives or ideal for the most demanding palates. Currently, Ecuador is the country where the highest quality cocoa is found.In 2021, Top exporters of Cocoa beans, whole or broken, raw or roasted are Cote d’Ivoire ($4,286,782. K , 1,606,410,000 Kg), Ghana ($1,370,363. K ), Ecuador ($819,457. K , 329,784,000 Kg), Nigeria ($560,101. K , 366,286,000 Kg), Cameroon ($482,366. K , 212,681,000 Kg).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.The export of the commodity accounts for 28. Business Day). A metric ton Cocoa commodity sell for an average of N11. Nigeria in comparison to the previous price N1. January 2024.
Is it good to invest in cocoa?
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. Most cocoa is produced in West Africa Côte d’Ivoire and Ghana are by far the two largest cocoa growing countries, accounting for 50 % of global cocoa production, followed by Ecuador with 9 %.More than 70% of the world’s cacao crop is grown in Africa, with Ivory Coast and Ghana producing approximately 58% of global production.While the global cocoa shortage has disrupted supply chains and driven up costs, consumer awareness of the shortage remains low.The Ivory Coast and Ghana are by far the two largest producers of cocoa, accounting for more than 50 percent of the world´s cocoa.
Why is cocoa price dropping?
However, cocoa demand weakened as prices rose significantly above production costs. Expectations of a renewed oversupply also contributed to the recent price decline. The commodity faced additional pressure as Nigeria increased its cocoa exports, easing supply concerns. The market for cocoa and chocolate is expanding. In 2024, the global cocoa bean market was valued at USD 17. It is expected to grow by almost 7% per year to USD 24 billion by 2029.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.Industry experts predict that cocoa prices will remain high for the rest of 2025, unless there is a drastic improvement in weather conditions or a breakthrough in controlling CSSV.While hopes remain for a better crop in the 2024/25 season, cocoa prices are expected to stay elevated in the medium term, hovering around the $6,000 per tonne mark once a more balanced market emerges.Cocoa is expected to trade at 9475. 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 11316.