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What Is The World Market Price Of Cacao?

What is the world market price of cacao

The world market price of cacao fluctuates based on various factors such as supply and demand, weather conditions, and global economic trends.

In 2022, the world market price for cacao typically ranged between $2,000 and $3,000 per metric ton.

After a steady rise over two years, the price of cacao beans skyrocketed in 2024, with futures contracts more than doubling in three months to reach a level in March twice as high as the previous record.

New York futures rose to a record $8,493 a metric ton.

The progression in the world market price of cacao has its literal roots in small West African farms but also involves climate change and the intricacies of the futures market. The latest surge has been driven in part by the kind of financial turmoil that can happen when commodities rise so fast that they overwhelm strategies meant to protect against such volatility.

The upshot is almost certainly bound to be more expensive chocolate that may come in smaller servings. But even if world market price of cacao recedes from current levels, it is likely to remain elevated for years to come.

Economists like to say that the cure for high prices is high prices, since they can reduce demand, spur increases in supply, or both. But the situation with cocoa shows how messy that idea can be in practice, given market complexities and obdurate physical facts like how long it takes for a new cacao tree to grow.

Recent Trends in Cacao Prices

  1. Price Volatility: Cacao prices have experienced volatility due to factors like climate change affecting cacao yields, political instability in major producing countries, and fluctuations in global demand.
  2. Supply Chain Issues: The COVID-19 pandemic has impacted the cacao supply chain, causing disruptions in production, transportation, and trade, which have influenced cacao market prices.
  3. Sustainability and Premium Prices: There’s a growing demand for sustainably produced and high-quality cacao, leading to premium prices for certified organic, Fair Trade, or specialty cacao beans.
  4. Increased Consumption: Despite challenges, the global demand for chocolate continues to grow, particularly in emerging markets like Asia, contributing to the overall world market price of cacao.