Extreme Weather Behind Record High Cocoa Prices

Extreme Weather Behind, Record High, Cocoa Prices .

Markets Insider reports that the price of cocoa has hit an all-time high, which threatens to raise prices for chocolate-lovers everywhere.

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Over the past year, the price of cocoa has doubled.

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On February 8, the most active futures contract for cocoa hit $5,600 per metric ton.

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According to Bloomberg, that's the highest price the contract has ever reached.

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Extreme weather events devastated crops in West Africa, where most of the world sources its cocoa beans.

Extreme weather events devastated crops in West Africa, where most of the world sources its cocoa beans.

Increased rain spread a crop disease that reduced yields, followed by dry weather that threatens to further cut production.

Earlier this week, Paul Davis, the president of the European Cocoa Association, said that he considers it possible that prices will continue to climb over $6,000 per ton.

We've got headwinds all over the place at the moment.

Very expensive fertilizers, tough conditions for farmers, tough conditions for consumers, Paul Davis, President of the European Cocoa Association, via Markets Insider.

Markets Insider reports that the rising cost of cocoa has impacted chocolate makers like Hershey, who are bracing for reduced earnings in 2024.

We are in a very tight balance.

There is no cavalry that's coming to the rescue, Paul Davis, President of the European Cocoa Association, via Markets Insider.

Crops around the world have been impacted by extreme weather, with damaged harvests bringing the cost of sugar, orange juice and olive oil to multi-year highs in 2023.

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Crops around the world have been impacted by extreme weather, with damaged harvests bringing the cost of sugar, orange juice and olive oil to multi-year highs in 2023.

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Crops around the world have been impacted by extreme weather, with damaged harvests bringing the cost of sugar, orange juice and olive oil to multi-year highs in 2023.