ISTANBUL: Cocoa prices have again hit USD10,000 per ton as supply in Ghana was hit by unfavorable weather conditions partly due to El Niño and plant diseases.
Prices skyrocketed in April because factories in Ghana and the Ivory Coast stopped production, citing high seed costs.
The ton price on the Intercontinental Exchange hit a record USD11,722 at that time.
After the surge in April, supply concerns eased toward the end of the month and the first week of May, as prices fell 24 percent between April 27 and May 4, dipping below USD7,000 per ton, which was its fastest decline of all time.
Currently, cocoa prices are on the rise with weather concerns on the agenda, as the ton price hit USD9,980 on Wednesday, up 7.8 percent on a daily basis.
Analysts said the surge in price stemmed from supply concerns in Ghana, as the country plans to postpone the deliveries of up to 350,000 tons of cocoa beans until next season due to poor crops, and cocoa production in Ghana has been on the decline for some time due to cl
imate change and illegal gold mining overshadowing cocoa farms.
Additionally, news that Ghanaian farmers are allegedly smuggling cocoa beans to neighboring countries to sell for higher profit also influenced the rise in prices.
The ton price of cocoa has risen about 135 percent since the beginning of 2024.
Source: Philippines News Agency