Cocoa prices hit $10,000 per ton amid supply, production concerns in Ghana

Cocoa prices hit $10,000 per ton amid supply, production concerns in Ghana

Unfavorable weather conditions, plant diseases cause supply issues, while news of farmers smuggling cocoa beans for profit influence prices upward

By Burhan Sansarlioglu

ISTANBUL (AA) - Cocoa prices have again hit $10,000 per ton due to supply and production concerns in Ghana.

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 $11,722 at that time.

The main reasons for supply issues were unfavorable weather conditions and the phenomena such as El Nino, and plant diseases.

After the surge in April, supply concerns eased toward the end of the month and the first week of May, as prices fell 24% between April 27 and May 4, dipping below $7,000 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 $9,980 on Wednesday, up 7.8% 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 climate 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% since the beginning of 2024.

*Writing by Emir Yildirim

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