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Cocoa prices have soared more than 20% in May after sharp declines at the start of the year, returning to above $11,000 per ton.
The price fell more than 34% this year to $7,613 per ton, before recovering some of its losses. The ton price lost over 5% compared to the end of 2024 but climbed 24% versus April, rising as high as $11,280 this month.
Cocoa demand fell as its price traded well above production costs, while expectations of renewed oversupply contributed to the falling prices.
Cocoa remained under pressure due to improved supply outlook, as increased exports of cocoa from Nigeria eased supply concerns.
Executives from Hershey’s and Mondelez International comments about high prices affecting demand negatively affected prices.
In May, cocoa prices rose more than 20%, leading to expectations that they may reach new records.
Last year, the price touched a record of $12,931 per ton.
Supply concerns come to fore in boosting cocoa prices
The slowdown of the Ivory Coast’s cocoa exports brought back supply concerns into the limelight, while weather concerns in West Africa drove prices higher.
More than one-third of Ghana and the Ivory Coast remain under drought conditions despite recent rainfall in West Africa, according to the African Flood and Drought Monitor.
Meanwhile, concerns about the quality of cocoa harvested in the Ivory Coast pushed prices upwards.
Zafer Ergezen, a futures and commodities expert, told Anadolu that the Ivory Coast is one of the main reasons for the recent rise, as “70% of the world’s cocoa is produced by West African countries, 60% of which is made up by the Ivory Coast and Ghana.”
“In the recent period, there was no decline in cocoa yield due to low rainfall, especially in the Ivory Coast, but the quality of cocoa has declined,” he said, noting that major chocolate makers in Europe raised serious quality concerns about recent deliveries, prompting the return of the poor quality products.
“As a result, while the harvest is not low, and it is in fact 10% higher than last year, concerns over the potential decline of demand for products made by the low-quality cocoa came to the fore, which pushed prices upwards,” he noted.
“If the cocoa quality remains low, cocoa prices may see new highs while harvest declines 10 to 20%,” he added.
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