Cocoa Market Crisis Follows Coffee, Prices Soar 180% This Year Due to Bad Weather

Cocoa prices have surged to record highs of 180% this year due to severe weather in key production areas, with analysts predicting further increases in 2568.

December 17, 2567, CNBC reported that The cocoa market is facing unprecedented volatility, with prices soaring to record highs. Due to unfavorable weather conditions and supply shortages in West Africa, the region that produces the majority of cocoa, or three-quarters of the world's.

New York's cocoa futures for delivery in March 2568 jumped 1% to $11,938 a metric ton on Tuesday (Dec 17), up more than 180% since the start of 2567, although prices have since fallen slightly.

ING said in a research report, citing data from the International Cocoa Organization (ICCO). The soaring cocoa prices are the result of the biggest global cocoa shortage in more than 60 years during the 2566-2567 marketing year, caused by crop failures in major producers such as Ivory Coast and Ghana.

Although forecasts for the 2567-2568 marketing year indicate a slight improvement in production, ongoing weather uncertainty poses significant risks.

These conditions, combined with continued market tightness, could lead to more extreme price volatility through 2568, with cocoa prices expected to reach record highs, ING strategists warn, which could necessitate a rein in demand.

Commodity markets are facing unprecedented volatility, with cocoa and coffee prices set to surge to historic levels in 2567, with analysts warning they are highly volatile and challenging.

As cocoa prices soared, so did coffee prices, reaching their highest levels since 2520, or 47 years ago, with robusta hitting an all-time high.

Mr. Carlos Mera from Rabobank Emphasizing the appeal and complexity of trading in these markets, he said of cocoa: It is one of the most opaque and complex commodities, and investors unfamiliar with the intricacies of cocoa are advised to exercise caution.

Similarly, changes in coffee prices have also attracted attention, with recent price increases making cocoa one of the most important commodities to watch.

Meanwhile, cocoa and coffee prices highlight the widening risks and opportunities in commodity trading, highlighting the need for experts and a deliberate approach.

refer : cnbc.com

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