COCOA PRICES SURGE TO $10,000 PER TON AMID GHANA’S PRODUCTION WOES

Fri 14 June 2024:

Cocoa prices have surged again, reaching $10,000 per ton due to ongoing supply and production concerns in Ghana.

The prices had spiked in April when factories in Ghana and the Ivory Coast halted production, citing high seed costs, driving the ton price on the Intercontinental Exchange to a record $11,722.

Supply issues were primarily due to adverse weather conditions, phenomena like El Nino, and plant diseases. However, towards the end of April and early May, supply concerns eased, and prices dropped 24% from April 27 to May 4, falling below $7,000 per ton, marking the fastest decline on record.

Currently, cocoa prices are climbing again, reaching $9,980 per ton on Wednesday, a 7.8% daily increase, driven by renewed supply concerns in Ghana. The country is considering postponing the delivery of up to 350,000 tons of cocoa beans until the next season due to poor crops, with climate change and illegal gold mining impacting production.

Additionally, reports of Ghanaian farmers allegedly smuggling cocoa beans to neighboring countries for higher profits have further influenced the price increase.

Overall, cocoa prices have risen approximately 135% since the beginning of 2024.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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