Cocoa prices have seen fluctuations that not only affect global markets but also have a direct impact on consumers worldwide. As a key ingredient in various products, changes in cocoa price influence everything from manufacturing costs to the price of goods on the shelves.
Is cocoa price up or down?
In the first half of 2024, the cocoa price experienced significant volatility. Factors such as fluctuating supply from key producing countries, combined with unpredictable weather conditions, played a major role in these price shifts. In the early months, coca prices rose sharply due to concerns over crop yields being affected by droughts in West Africa. However, by mid-2024, some relief came as weather conditions improved, stabilizing production and causing a slight decline in prices.
Traders interested in investing cacao know these fluctuations almost by heart. The commodity is heavily influenced by external factors such as climate, political instability in producing regions, and global demand
Impact with a few months delay
Despite the cocoa prices falling in October 2024, consumers are still seeing high prices for products like chocolate. It is because the effects of cocoa price increases from the first and second quarters of the year are only now being reflected in retail prices. Manufacturers often pass on these earlier cost surges to consumers with a delay, which is why chocolate prices remain elevated despite the recent dip in cocoa prices.
This phenomenon is not unique to coca. A similar pattern can be seen with gold – when gold today price rises in the market, it often takes several months before the cost of gold jewelry increases, as retailers adjust their pricing to account for earlier fluctuations.
Agricultural commodities: prices of cocoa, coffee and more
Agricultural commodities, including cocoa, coffee, and soybeans, are all subject to significant price fluctuations driven by a range of factors. Cocoa prices, as mentioned earlier, are heavily influenced by weather patterns and political instability in major producing regions such as Ivory Coast and Ghana. SImilarly, coffee prices experience volatility due to production challenges, such as frost in Brazil or shifting consumer demand. Cocoa and coffee prices in 2024 saw notable spikes, making them critical commodities for traders to monitor closely.
Soybeans are another key agricultural commodity affected by global supply chains and trade policies. In recent years, the demand for soybeans has been impacted by both the growth of plant-based food markets and ongoing for soybeans has been impacted by both the growth of plant-based food markets and ongoing trade tensions between major exporting and importing countries. Investing coffee price and investing soja brings interest for traders looking to diversify their portfolio.
