Cocoa Bean Surpasses Bitcoin
Bloomberg has identified chocolate's primary ingredient as the top-performing commodity of 2024, following a remarkable 300% price surge. Read Full Article at RT.com.
TroibNews 
Bloomberg has declared cocoa the best-performing commodity of 2024, surpassing Bitcoin in returns. The cryptocurrency has been a focal point this year, especially as it broke the long-anticipated $100,000 barrier in early December.
The price of cocoa, which is the central ingredient in chocolate, has nearly tripled since the beginning of 2024 due to significant supply shortages stemming from declining production in West Africa, the largest growing region, as reported by the publication with reference to exchange data.
At the start of January, cocoa futures were priced around $4,000 per tonne. By mid-December, they had surged to a high of $12,700 per tonne, according to Trading Economics.
MarketWatch noted that Bitcoin's gains “pale in comparison.” The leading cryptocurrency, measured by market capitalization, experienced a nearly 128% increase from just over $41,000 in early January to a peak of $106,500 in mid-December. This surge is partly attributed to investor optimism regarding crypto-friendly policies anticipated from US President-elect Donald Trump’s administration.
Challenges in cocoa production have been linked to extreme weather conditions and shortages of fertilizer. The region has faced severe drought, with record-breaking temperatures exceeding 40C reported in the Ivory Coast and Ghana, which are the two largest producers of cocoa beans.
Additionally, West Africa is confronting a soil health crisis, with two-thirds of its land being degraded and fertilizer usage falling significantly short of global standards, as highlighted by the International Institute of Tropical Agriculture.
Many nations in Africa rely on fertilizer imports from Russia, Belarus, and Ukraine. Since the onset of the conflict in Ukraine in 2022, these imports have significantly decreased, leading to shortages and increased prices.
Ongoing supply challenges, aggravated by climate change and fertilizer scarcity, are expected to maintain cocoa prices at historically high levels for the foreseeable future, according to Trading Economics.
Debra A Smith for TROIB News
The price of cocoa, which is the central ingredient in chocolate, has nearly tripled since the beginning of 2024 due to significant supply shortages stemming from declining production in West Africa, the largest growing region, as reported by the publication with reference to exchange data.
At the start of January, cocoa futures were priced around $4,000 per tonne. By mid-December, they had surged to a high of $12,700 per tonne, according to Trading Economics.
MarketWatch noted that Bitcoin's gains “pale in comparison.” The leading cryptocurrency, measured by market capitalization, experienced a nearly 128% increase from just over $41,000 in early January to a peak of $106,500 in mid-December. This surge is partly attributed to investor optimism regarding crypto-friendly policies anticipated from US President-elect Donald Trump’s administration.
Challenges in cocoa production have been linked to extreme weather conditions and shortages of fertilizer. The region has faced severe drought, with record-breaking temperatures exceeding 40C reported in the Ivory Coast and Ghana, which are the two largest producers of cocoa beans.
Additionally, West Africa is confronting a soil health crisis, with two-thirds of its land being degraded and fertilizer usage falling significantly short of global standards, as highlighted by the International Institute of Tropical Agriculture.
Many nations in Africa rely on fertilizer imports from Russia, Belarus, and Ukraine. Since the onset of the conflict in Ukraine in 2022, these imports have significantly decreased, leading to shortages and increased prices.
Ongoing supply challenges, aggravated by climate change and fertilizer scarcity, are expected to maintain cocoa prices at historically high levels for the foreseeable future, according to Trading Economics.
Debra A Smith for TROIB News
