Cocoa Caps 2024 as Biggest Commodity Winner. It’s Not Over Yet
- Bad weather in West Africa raises fears of a fourth deficit
- The rally has seen New York futures almost triple this year
The cocoa market had cooled, after surging to just under $12,000 a ton in April, on expectations of better harvests in West Africa.
Photographer: Dado Galdieri/BloombergCocoa’s rally has soared past all major commodities in 2024, and there’s little sign the tight supply and fragile trading landscape that prompted its near-vertical trajectory are in for a fast fix.
Prices have almost tripled as faltering production in West Africa — the world’s biggest growing region — spurred massive supply shortages. Many traders, burned by soaring costs to maintain positions, fled the market as the rally gained steam, and chocolate makers sat out hedging new inventory in a bid for lower prices.