Cocoa Market Analysis

Price Trends:

Cocoa prices have experienced a significant rally since the beginning of 2024, increasing by over 75%. In April 2024, cocoa prices reached an all-time high of $12,261 per metric ton. However, recent weeks have seen a retracement of this bullish trend, with prices declining over 35% from the peak.

Market Drivers

Weather conditions in West Africa, the central cocoa-producing region, have raised concerns about potential supply disruptions.

Outlook:

Short-term: According to Trading Economics, cocoa prices are expected to trade around $8,030.57 per metric ton by the end of this quarter. Technical analysis suggests that further declines could be expected in the short term, as the current retracement might not be over.

Long-term: Trading Economics forecasts cocoa prices to reach $9,038.83 in 12 months. The long-term outlook for the cocoa market remains positive, supported by the growing demand from emerging markets and the potential for supply disruptions. This forecast should inspire confidence in the market’s resilience and potential for growth.