“Cocoa beans overtake Bitcoin to become the most profitable commodity of the year The price of cocoa beans has increased by 185% due to climate problems in West Africa, reaching 12 thousand dollars per ton. The International Cocoa Organization predicts a shortage of raw materials of 478,000 tons.”, — write on: unn.ua
Details
According to Dow Jones Market Data, the cost of beans in March was almost $12,000 per ton. Since then, the price of cocoa beans has increased by almost 185%, while bitcoin has risen by 128%, and the stock index, which reflects the dynamics of the shares of the 500 largest US companies, by only 25%.
The price changes are unlikely to end anytime soon, with the 2023/2024 crop year showing the most severe supply shortage of cocoa beans in 60 years. Cocoa prices have risen to record highs, and the market is not expecting any relief anytime soon. The cost of cocoa beans has risen due to drought, disease and structural problems in West Africa, the world’s largest cocoa exporter
Oceans have warmed to record temperatures and affected West African cocoa crops, which have already suffered from two years of extreme climate change. Wet weather in October again damaged cocoa trees in some regions of West Africa. And recently, dry dusty hot winds from the Sahara have passed. They threaten the harvest that is harvested in the spring.
The International Cocoa Organization predicts a shortage of raw materials of 478,000 tons and a drop in production by 13.1% in annual terms. Despite the record prices, the demand for cocoa is stable: people do not want to give up coffee and chocolate.
We will remind
Arabica coffee futures rose to $2.68 a pound, the highest level since 2011. The increase in prices is caused by a shortage of robusta, the drought in Brazil and problems with logistics.