A ton of cocoa costs $10,000…a rise in global chocolate prices

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I jumped Cocoa prices In global markets, it exceeded $10,000 per ton, in an unprecedented development, breaking previous records and continuing the historic rise witnessed this year.

Chocolate prices rise globally

This sharp rise comes in light of growing fears of a shortage in the global supply of cocoa for the third year in a row, due to the decline in harvests in West Africa, which threatens to raise the cost of chocolate globally.

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The industry faces many challenges as a result of the low returns received by cocoa farmers, which makes it more difficult to obtain enough cocoa beans to meet the increasing demand.

In financial markets, pressures are mounting due to the movements of traders who sell futures contracts to hedge against their holdings, forcing them to provide liquidity to cover margin calls in light of the rising market, which may lead to closing their short positions and contribute to strengthening the current rise in prices.

Cocoa futures rose 4.5% to $10,080 in New York on Tuesday, while a technical price indicator indicates that the market has entered overbought territory for several months, despite the continued increase in cocoa prices.

Chocolate consumption

In light of the continuing rise in cocoa prices, global markets and consumers face many challenges, especially as… Easter Holidaywhere chocolate consumption is at its peak.

Attention is also now turning to the expected West African crop, which is the smaller of the two annual harvests, amid expectations of a decline in production this season.

In addition, new European Union rules seek to limit the sale of products that cause forest destruction, which may make it more difficult to secure supplies for chocolate makers on the Old Continent.

At the same time as countries such as Brazil and Ecuador seek to increase production, newly planted trees need a few years before they bear fruit, delaying solutions to the growing pressures on global supplies.

Cocoa prices in America

The International Cocoa Organization has indicated that the stock-to-grind ratio may reach its lowest levels in more than four decades this season, reflecting the instability in the market.

Cocoa prices in New York rose by 3.5% to reach $9,991, while markets for other commodities such as sugar and coffee saw slight increases. It should be noted that cocoa futures contracts in London have more than doubled this year.

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