Cocoa Prices Surging Faster Than Bitcoin, Stabilization Not Expected Soon

The demand for cocoa has been steadily increasing for months, and this demand has driven up prices to unprecedented heights. Currently, one ton of cocoa beans costs more than $10,000 on the New York futures market. This rise in price is due to disappointing harvests, which have led to a shortage of supply. Despite these challenges, investing in cocoa could prove to be profitable as the price has reached new highs.

On Tuesday, $10,047 was paid for a ton of cocoa beans on the New York futures market. This is a significant increase compared to a month ago when cocoa cost almost $6,000 per ton and even faster than the 150 percent increase in Bitcoin’s price. The poor harvests can be attributed to older and diseased trees as well as the weather phenomenon El NiƱo that caused drought in Africa. More than 60 percent of global cocoa production takes place in Ghana and the Ivory Coast where extreme weather conditions have halved harvests. Efforts are underway to increase production in Brazil and Ecuador but it will take years for these trees to bear fruit.

Belgian chocolate producers are facing a challenge as the industry is worth 6.1 billion euros with exports accounting for 3.4 billion euros. Belgium is the world’s second largest exporter of chocolate representing 11 percent of the world market. The port of Antwerp is also the largest storage location for cocoa beans in the world. As a result of the high cocoa prices, chocolate producers are expected to pass on these costs to consumers with an increase in price but not as quickly as the rise in cocoa prices themselves

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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