Benzinga - by Piero Cingari, Benzinga Staff Writer.
Cocoa prices surged to a staggering $10,000 in the last week of March 2024, marking an unprecedented 240% increase from the previous year that’s bound to affect chocolate lovers this Easter.
This surge has placed cocoa’s market performance on par with that of Nvidia Corp (NASDAQ:NVDA), the leading S&P 500 stock over the past year, and notably ahead of Bitcoin‘s (CRYPTO: BTC) 160% increase in the same period.
Chart: Cocoa Rivals Nvidia’s 1-Year Stock Surge, Outperforms Bitcoin
The Driving Forces Behind Cocoa’s Price Surge
According to a recent Reuters report, a series of unfortunate events in West Africa, particularly in Ghana and Ivory Coast, which together dominate over 60% of the global cocoa supply, have led to the skyrocketing surge in cocoa prices.
Experts, farmers, and industry insiders have pinpointed several culprits: illegal gold mining, climate change, mismanagement within the sector, and the rampant spread of diseases affecting cocoa plants.
El Niño’s heavy rains in December exacerbated the situation, damaging crops and facilitating the spread of the dreaded black pod disease.
The Price of Chocolate: A New Luxury?
Tedd George, an Africa-focused commodities expert at Kleos Advisory, expects that chocolate bars are going to become a luxury, believing that they will become twice as pricey.
The Buying Power Of A Ton Of Cocoa In Today’s Market
- 10 shares of Nvidia Corp.
- 55 shares of Tesla Inc. (NASDAQ:TSLA)
- 187 shares of Reddit Inc. (NASDAQ:RDDT)
- 770 shares of Gamestop Corp. (NYSE:GME)
- 9,635 shares of Nikola Corp. (NASDAQ:NKLA)
- 4.4 ounces of gold
- 1.1 tons of copper.
- 117 barrels of light-crude WTI.
- 0.14 Bitcoin.
Read now: Agriculture Commodities Rise To 9-Year Highs, Cocoa Prices Skyrocket: Chocolate Lovers Brace For Hyperinflation
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