Global cocoa bean prices have surged to their highest level since late April, hitting $10,961 per ton on the ICE Futures exchange. This marks a 1.29% increase in a single day, according to data from the exchange, Report informs.
The price of cocoa beans has skyrocketed nearly 11% since the start of the week and a staggering 16% since the beginning of December. This follows a significant 30% rise in November alone.
The International Cocoa Organization attributes the November price surge to concerns over a potential deficit, despite increased supplies of the raw material to markets. Farmers have yet to fulfill outstanding contracts from the previous year, while the new crop is threatened by unfavorable weather conditions and tree diseases.
Experts point to dwindling stockpiles on exchanges as another factor exacerbating the situation. London exchange inventories fell by 20% in November, while US exchange stocks decreased by 11% over the same period, clearly indicating that reserves are not being replenished despite increased market supplies.
The rising cost of cocoa is likely to impact the prices of chocolate and other cocoa-based products, as manufacturers grapple with the increased expense of this essential raw ingredient.