Watch out Easter Bunny: Cocoa prices hit new highs
Cocoa futures for May delivery surged to an all-time intraday high of $10,080 per metric tonne yesterday before ending the day down 0.3% to settle at $9,622.
Our Market Strategist @Jessica Amir may be able to predict the future, as she spoke about rising cocoa prices in February in a Ticker TV interview, and prices were sitting at nearly $5,900 per metric tonne - which was high at the time.
But what's causing this surge in price? Here are some insights from Jess:
West Africa, which accounts for 70% of the world's cocoa supply, is experiencing numerous setbacks for their crops. Crops are experiencing infectious diseases such as black pod disease, which is exacerbated by the heavy rains of 2023.
Additionally, El Niño-induced winds have led to lower cocoa yields.
Jess has found that major chocolate brands responsible for crowd favourites like Cadbury and Kit-Kat have already implemented price hikes of 20%.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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JC7577 : The price of raw sugar is also soaring
Wealthy Leio : El Niño-triggered winds causing lower cocoa yields is so sad.
Lysander : Cost of repairs and replacement parts have gone way up. Still a lot of supply chain hiccups and labour costs increasing.
Liam Mitchell : Even more to beware is the money in your pocket.