Cocoa beans overtake bitcoin to become the most profitable commodity of the year

Cocoa beans became the most profitable commodity in the world in 2024. The price of cocoa outperformed the growth of the US stock market and bitcoin. The cost has risen due to drought, disease and structural problems in West Africa, the world’s largest cocoa exporter. This is reported by the financial publication MarketWatch, according to UNN.

Details

According to Dow Jones Market Data, the cost of beans in March amounted to almost $12,000 per ton. Since then, the price of cocoa beans has risen by almost 185%, while bitcoin has risen by 128%, and the stock index, which reflects the dynamics of the 500 largest US companies, has risen by only 25%.

The price changes are unlikely to end soon: The 2023/2024 agricultural year showed the most serious shortage of cocoa supply in the last 60 years. Cocoa prices have risen to record levels, and the market does not expect any relief in the near future. The cost of cocoa beans has risen due to drought, disease and structural problems in West Africa, the world’s largest cocoa exporter

The oceans have warmed to record temperatures and have 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 been blowing in. They threaten the harvest in the spring.

The International Cocoa Organization predicts a shortage of 478 thousand tons of raw materials and a 13.1% year-on-year drop in production. Despite record prices, demand for cocoa is stable: people do not want to give up coffee and chocolate.

Recall

Arabica coffee futures rose to $2.68 per pound, the highest level since 2011. The price increase was caused by a shortage of robusta, drought in Brazil and logistics problems.