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/BloombergThis article is for subscribers only.
Cocoa’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.