Cocoa prices rise to fresh record, near $9,000 per metric ton

A woman spreads cocoa beans during the sun-drying process in the backyard of her house in Asikasu, Ghana, on Dec. 19, 2020.

Cristina Aldehuela | Afp | Getty Images

Nvidia may get most of the headlines, but the hottest trade of 2024 is shaping up to be a commodity: cocoa.

Cocoa futures have more than doubled to records since the beginning of the year, with prices now approaching $9,000 per metric ton. On Friday, they hit a fresh all-time high, last up 2.8% at $8,789 per ton. Prices are also up more than 10% for the week.

When 2024 began, cocoa was trading below $4,200 per ton.

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Cocoa futures year to date

The reason for this massive surge in price goes back to disruptions on both supply and demand.

Severe El Niño-induced dry weather conditions and reported wildfires have cut down cocoa supply. Demand has also remained strong in countries such as the U.S., helping companies such as Hershey’s and Mondelez better offload rising prices onto consumers.

It appears that these dry weather conditions won’t be letting up anytime soon.

Rainy season in the Ivory Coast typically runs from April to October, but the region is currently facing hotter-than-usual temperatures, which could extend its lack of abundant rainfall, Reuters reported. A lack of rain could lead to subpar beans in size and quality, further limiting cocoa supply moving forward.