Cocoa price reaches its highest since July 1977
The price of cocoa bean futures for March delivery on the New York Mercantile Exchange (NYMEX) rose 3.63% to $5,191 per ton, reaching its highest level since July 1977.
This price increase is attributed to a possible cocoa shortage due to crop failure in West Africa. Limited availability of cocoa from the region and forecasts of new production shortfalls relative to demand are driving up prices. Dry weather caused by Harmattan could affect harvests in West Africa, worsening the situation.
Exports from Ivory Coast, the world's largest cocoa-producing country, fell 35% from last year. The cocoa market is forecast to face supply shortages in the current agricultural year.
The market is also supported by retail demand for chocolate associated with the approaching Valentine's Day.
At the end of 2023, cocoa futures prices increased significantly both on the London exchange (by 70%) and on the NYMEX (by 61%). This is due to various factors, including adverse weather conditions and fears of a global cocoa shortage.