In 2024, the prices of key ingredients for chocolate have surged, prompting Analysts to warn that extreme fluctuations in price are expected.
On Tuesday morning Eastern Time, the New York cocoa Futures contract for March delivery on the New York Commodity Exchange briefly rose by 1%, reaching a historic high of $11,938 per ton. It later retraced some of the gains, trading at around $11,864 per ton at 8:20 AM Eastern Time on Tuesday.
So far this year, the price of this Futures has increased by over 180%.
Meanwhile, concerns regarding adverse weather conditions and supply tightness in West Africa have resurfaced, as West African cocoa production accounts for about three-quarters of the world's output.
Strategists at ING Banks in the Netherlands have indicated that the cocoa and coffee markets remain under pressure, combined with weather uncertainties, which suggests that prices could continue to fluctuate next year.