Cocoa Prices Surge to Record High Amid Supply Constraints and Strong Demand

In a historic development, cocoa prices surged on Tuesday, reaching a record high due to supply constraints that are driving prices up. Futures for May delivery saw a remarkable increase of 3.9%, soaring to $10,030 per metric ton, surpassing the $10,000 mark for the first time in history. 

Cocoa prices

This year alone, cocoa prices have skyrocketed by almost 138%, partly due to the adverse weather conditions in the world's largest cocoa producer, Ivory Coast. The region has been grappling with hotter-than-normal temperatures, resulting in drier conditions and lower crop yields. Moreover, the outbreak of cacao swollen shoot virus has further diminished the cocoa supply. These factors have significantly impacted the market, while the demand for chocolate in countries like the U.S. continues to remain robust.

Contrary to a previous version, cocoa prices have surged by over 100% this year, not a lesser percentage as previously stated.