Cocoa Prices Plummet to a Minimum: What Awaits Chocolate Producers.

According to ТСН: Cocoa futures on the New York Exchange have fallen to their lowest level since February 2024.

Analysts believe that the main reason for this is the volume of beans being shipped to ports for export from the leading producer - Côte d'Ivoire.

For three consecutive weeks, shipments of beans to ports have exceeded 100,000 tons, indicating a steady supply momentum.

Cocoa Prices

Specifically, on November 24, prices dropped by 2.7% to $5053 per ton - about 60% less than the historical peak recorded in December. The forecasts for a global surplus are attributed to improved production and decreased demand.

Market Outlook

Earlier, it was reported that cocoa futures exceeded the $10,000 per ton mark, which was part of a historic rally during which prices doubled this year. According to forecasts from the International Cocoa Organization, the ratio of stocks to processing this season will fall to its lowest level in over four decades, indicating market instability.

Impact on Producers and Consumers

High cocoa costs reduce the profits of chocolate manufacturers, and rising cocoa prices may negatively affect consumers if companies continue to pass on costs to them or reduce product size and chocolate content.

Thus, the drop in cocoa prices reflects the tense situation in the market, where the balance between supply and demand is becoming increasingly precarious. Producers and consumers may feel the consequences of these fluctuations as the market continues to adapt to new conditions.