- Cocoa has more than doubled, and coffee reached its highest level since 1977 due to limited supply and high demand.
- Experts expect continued volatility next year as traders monitor inventory and weather for price disruptions.
Since the beginning of 2024, cocoa futures have more than doubled in price and are currently climbing for the seventh week in a row, hitting record levels. The mix of limited supply, high demand, and uncertain weather is keeping the cocoa market unpredictable. Analysts at ING expect prices to stay volatile through next year.
Coffee has also seen a big price jump in 2024, reaching its highest level since 1977. Experts warn that it might take years for coffee prices to come back down. Analysts at Rabobank warned that commodity markets are “very volatile” and “very dangerous,”.
Traders in both the cocoa and coffee markets are keeping a close eye on inventory levels and weather forecasts because any disruptions could cause prices to swing even more.
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