The Strategist

Cocoa bean prices hit new all-time high

02/28/2024 - 09:39

Cocoa bean futures hit an all-time high in price as concerns over supply shortages brought on by illness and drought are growing, writes Bloomberg.

The exchange's price of cocoa beans reached a record high. This occurred amid mounting concerns, according to Bloomberg, that supply would be limited as a result of disease and drought that ruined crops at important West African suppliers. The FDA stated that these shortages pose a risk to chocolate manufacturers' bottom line.

On February 27, the price of cocoa bean futures on the London-based ICE exchange increased by 2.64%, but then decreased to 1.17%. The price of cocoa beans on the exchange has increased by about 70% since the year's commencement.

Prior to that, on February 21, Bloomberg reported that smuggling and bad weather conditions had caused Ghana to lower its prediction of cocoa production for the current season by 24%. The agency warned that production could reach a 14-year low in the nation. The 2023–2024 season, which finishes in September, is predicted to produce 650,000–700,000 tons of beans, down from a previous projection of 850,000 tons, according to Ghana Cocoa Board Executive Director Joseph Boahen Aidoo.