19:25 19 April 2024
Cocoa to be Over 300% More Expensive Than Last Year
Cocoa beans have been one of the best investments so far this year. On Friday, its price set a new record and has increased by almost 180 percent since the beginning of the year.
The rise in cocoa prices is driven by fears of low supply due to poor weather conditions in the countries that are the largest exporters. However, recent data shows that in Europe and Asia, the record prices have not yet affected demand. In the first quarter, the processing of cocoa beans into mass and powder used in confectionery decreased by 2 percent, and even less in Asia. In the USA, it increased by 4 percent.
"The data is not even close to a level that would suggest a weakening of demand that would end this growth rally," John Goodwin, a commodity market analyst at ArrowStream, said.
