LONDON (AFP) – New York cocoa prices on Tuesday cracked an all-time peak above USD10,000 on stubborn supply fears, further stoking worries about the elevated cost of Easter eggs and other treats.
The commodity, which is mostly used to make chocolate, zoomed as high as USD10,080 per tonne to extend its record-breaking run.
The most-traded cocoa contract later stood at USD9,767 at about 1600GMT, as poor harvests in producing countries sparked shortage woes.
London cocoa prices meanwhile vaulted on Tuesday to a new historic pinnacle of GBP8,682 per tonne. The rocketing cocoa market has sparked worries over the knock-on impact on the price of chocolate, at a time when the world’s major economies are already grappling with elevated inflation.
“Chocolate is the new luxury good in town, and we expect that sweet treats will see their prices surge in response,” said XTB analyst Kathleen Brooks.
New York cocoa seen its price more than double this year, surging by around 135 per cent.
London prices have leapt by 144 per cent in value.
Cocoa soared in 2023 on a wave of speculation over a global supply deficit, whereby demand outpaces supplies.
The market accelerated its dizzying ascent this year, driven by a supply crunch over bad weather in Ghana and Ivory Coast. The West African nations are the world’s biggest producers of the commodity.
Both countries had been hit by heavy rains that have sparked a tough year for the crop.
Producers now also face fresh turmoil due to the resurgence of the El Nino climate phenomenon, which causes drought in some areas and flooding in others.
“Supply and demand fundamentals have driven the price of cocoa higher this year,” noted Brooks.
“Reduced supply from West Africa, the main cocoa growing region, along with a boost in demand is putting upward pressure on the price.”
