In the commodities market, a significant shift has occurred as the price of a ton of cocoa beans has surpassed the price of a ton of copper. On Tuesday, the New York futures market saw a record high of $9,400 per ton for cocoa, which rose over 5 percent. This increase in price has made cocoa more expensive than copper, causing panic in the industry.
The rise in cocoa prices is due to several factors such as poor weather conditions and structural issues like aging and diseased trees in West Africa, where most of the world’s cocoa is produced. These issues have resulted in smaller harvests, leading to a 50 percent increase in the price of cocoa in March alone.
The chocolate industry is facing significant implications due to this trend as costs are likely to be passed on to consumers. With supply chain challenges and increased demand for cocoa products, there could be a shortage in the global cocoa supply. This trend is concerning not only for producers but also for consumers in the chocolate industry.
