The crisis is growing… The price exceeded 9 thousand dollars! It left copper behind
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While there are positive expectations regarding the commodity market in global markets, one product has been making a lot of talk lately: Cocoa.
Cocoa prices, which attracted attention with their recent upward momentum and reached the highest level in 46 years, exceeded 9 thousand dollars per ton. Thus, cocoa surpassed copper, which is around 9 thousand dollars per ton.
There was an increase of up to 50 percent in cocoa prices in March. Market experts pointed out the possibility that the latest rally could increase prices to 10 thousand dollars.
PRICES MAY INCREASE FURTHER
Bloomberg Intelligence Analyst Diana Gomes pointed out that chocolate prices may be higher during the Easter period of 2025.
The rise in prices has disrupted the global supply chain, where farmers sell beans to local traders, who in turn sell them to processing plants or global traders.
These global traders were selling cocoa beans or cocoa products such as butter, powder and cocoa liquor to global chocolate giants such as Nestle, Hershey and Mondelez.
A PERIOD OF Famine IS EXPERIENCED
In the normally highly regulated cocoa market, traders and cocoa processing plants purchased cocoa beans from local traders at predetermined prices up to a year ago. Local regulators would then lower the field production price that farmers could charge for cocoa beans.
But during times of scarcity, like this year, local traders often pay farmers a premium over the field price to secure cocoa beans.
Traders then sell the cocoa beans at higher prices on the spot market rather than delivering them at pre-agreed prices.
CHOCOLATE COMPANIES ARE ALSO IN TROUBLE
While global traders rush to buy these cocoa beans at any price to fulfill their obligations to chocolate companies, local processing plants are often faced with a shortage of cocoa beans.
Ivory Coast and Ghana normally tried to protect local factories by offering cheap loans or limiting the amount of cocoa beans global traders could buy.
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