The price of cocoa beans has reached a historic high due to concerns over a poor harvest in Côte d'Ivoire, the largest producer of the raw material. This was reported by Bloomberg.
On the New York Mercantile Exchange on December 18, cocoa bean futures rose by 3.9%, hitting $12,200 per ton for the first time in history. Subsequently, the growth slowed down, and the price slightly decreased.
The primary reason for the increase is the expectation of a reduced harvest in Côte d'Ivoire. This African country accounts for over a third of global raw material production. According to analysts' forecasts, production volumes for the 2024-2025 season are expected to be 1.9 million tons, which is 10% lower than the official estimates of 2.1 to 2.2 million tons.
Farmers report negative impacts from drought and high temperatures, which could decrease yields in the season starting in April next year. According to Reuters, although cocoa bean shipments to ports have increased by 34% compared to the worst season in a decade (2023-2024), they are still 15% below the levels of the normal 2022 season.
Experts believe that cocoa prices will remain high next year. Weather conditions in West Africa remain unstable, which could again impact the harvest. Despite ongoing hopes for increased production in 2025, the market remains tense.
In April, global prices for Robusta coffee reached their highest level since 2008 due to fears of a shortage. Abnormal heat threatened the production of Robusta coffee beans in Vietnam.
Previously, Spot reported that average inflation perceptions in November reached a yearly high.