Cocoa beans are the most expensive asset in 2024 amid shortages and unfavorable weather
Source: kapital.kz
Cocoa beans are showing unprecedented value growth in 2024, outstripping even bitcoin and the US stock market.
According to MarketWatch, their price has more than doubled since the beginning of the year, reaching a record 12,931 thousand dollars per ton on December 18.
Extreme weather conditions in Côte d'Ivoire, the world's largest producer of cocoa beans, remain a key factor. Record high ocean temperatures and drought have severely reduced yields.
Supply deficit: The 2023/2024 agricultural year ended with the largest shortage of cocoa beans in 60 years - 478 thousand tons, according to the International Cocoa Organization (ICCO).
Reduced production: Global cocoa bean production decreased by 13.1% compared to last year, and stocks decreased by 26.8%.
James Romer, publisher of the Weather bulletin, notes that difficult weather conditions in West Africa continue to affect the market, creating conditions for further price increases.
According to Dow Jones Market Data, the next cocoa bean futures rose 2.9 times in a year, while bitcoin rose 2.3 times and the S&P 500 index gained less than 25%.
Despite the significant price increase, demand for cocoa beans remains high. Jake Hanley, managing Director of Teucrium, emphasizes that consumers are reluctant to abandon products such as chocolate.
The combination of seasonal demand and limited supply, especially ahead of the holidays, can lead to even higher prices.
Experts advise market participants and consumers to take this dynamic into account, as adverse weather conditions and global climate change continue to put pressure on agricultural markets.
Extreme weather conditions in Côte d'Ivoire, the world's largest producer of cocoa beans, remain a key factor. Record high ocean temperatures and drought have severely reduced yields.
Supply deficit: The 2023/2024 agricultural year ended with the largest shortage of cocoa beans in 60 years - 478 thousand tons, according to the International Cocoa Organization (ICCO).
Reduced production: Global cocoa bean production decreased by 13.1% compared to last year, and stocks decreased by 26.8%.
James Romer, publisher of the Weather bulletin, notes that difficult weather conditions in West Africa continue to affect the market, creating conditions for further price increases.
According to Dow Jones Market Data, the next cocoa bean futures rose 2.9 times in a year, while bitcoin rose 2.3 times and the S&P 500 index gained less than 25%.
Despite the significant price increase, demand for cocoa beans remains high. Jake Hanley, managing Director of Teucrium, emphasizes that consumers are reluctant to abandon products such as chocolate.
The combination of seasonal demand and limited supply, especially ahead of the holidays, can lead to even higher prices.
Experts advise market participants and consumers to take this dynamic into account, as adverse weather conditions and global climate change continue to put pressure on agricultural markets.
