Market history · Commodities ·
Cocoa tops $12,000 a tonne
On 17 and 18 December 2024 cocoa futures set a fresh record above $12,000 a tonne, after a run that had lifted the price far above where it began the year. CNBC and Bloomberg reported that supply fears from West Africa, where most of the world's cocoa is grown, lay behind the rise, and the price had touched nearly $13,000 by the end of the year according to Anadolu Agency.
The spike fed through to chocolate makers, whose costs rose sharply. Within about a year, trade press was describing a collapse from the records as demand weakened and supply prospects improved.
Soft commodities such as cocoa are driven by weather, crop disease and the behaviour of a small number of producing countries, which makes their prices unusually volatile.
The takeaway
Agricultural prices can spike on supply shocks and fall back when demand adjusts. Both the rise and the fall can be large.
Sources
- CNBC: Cocoa prices climb to new record high, prompting fresh warnings about extreme volatility
- Bloomberg: Cocoa soars above $12,000 to reach fresh record on supply fears
- Anadolu Agency: Cocoa hits record price of nearly $13K per ton
- Bakery and Snacks: Cocoa prices crash after 2024 record highs as demand slump hits global chocolate market
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