There is Only One Thing Outpacing Bitcoin Rally: Cocoa Surges Past $10,000

Cocoa futures rose to a record above $10,000 a ton, extending a historic rally that has seen prices double this year and set to push up the cost of chocolate in 2024. New York futures rose for a fourth straight day, extending gains on news of financing problems in Ghana, the world's second-largest producer.

A poor harvest in West Africa has left the world facing supply shortages for the third consecutive year. Upcoming environmental regulations in the European Union, the main importing country, increase the obstacles to ensuring the safety of cocoa beans, and the market is grappling with the concern of poor returns to cocoa growers. Lower cocoa production in the Ivory Coast, remarkably the world's largest producer — not a financial situation in Ghana — is the greatest impetus for continuation of cocoa price rally. Monday's government data showed that Ivory Coast farmers shipped just 1.28 MMT (million metric tons) of cocoa to ports from October 1 to March 24, down by 28% YoY.

All in all, he most active May futures in New York are trading 1% higher since the start to $9,727 a ton after rising yesterday 4.1% to $10,047 a ton. The upcoming Easter holiday is the peak chocolate consumption season, and the lag between the commodity market and the retail market means that consumers will most certainly be affected.