Cocoa Futures Surge to Record High Due to Ivory Coast Production Concerns

Cocoa futures in New York have reached a new record, surpassing $12,000 per ton. This sharp increase is driven by growing concerns over a decline in production in Ivory Coast, one of the world's leading cocoa producers. The most active contract rose to $12,163 per ton, increasing by as much as 3.4%.

Cocoa futures have nearly tripled in value this year, largely due to poor harvests in West Africa. This situation has led to the most severe deficit on record, forcing companies to tap into their reserves. Prices in London also rallied with an increase of over 3%.

Concerns about supply have reignited due to expectations of a weaker crop in Ivory Coast for the current season. The country, responsible for more than a third of global cocoa production, is projected to produce 1.9 million tons in the 2024-25 season. This figure represents nearly a 10% decrease from the government’s initial forecast of approximately 2.1 to 2.2 million tons made at the start of the season in October. A poorer harvest will further complicate the replenishment of already declining stocks.