Breakfast commodities are rising in price by tens of percent, led by cocoa

Completely unpredictable and extremely changeable weather threatens to make breakfast more expensive in the world. The price of cocoa is a symbol of harsh price blows, which rose by almost eighty percent over the last year on the global market, becoming the fastest growing commodity on the markets in the past twelve months. At the same time, the price of another popular morning drink, orange juice, is only slightly less this year. But even tea and coffee lovers can grumble. The prices of these commodities also increased by tens of percent. Threats to diners were nevertheless a welcome investment opportunity for speculators, and “breakfast” commodities were said to be far from the last word.

“Cocoa prices have strengthened by tens of percent this year mainly due to weaker production in West Africa. The largest producers of cocoa beans, such as Ghana or the Ivory Coast, faced unusually rainy and windy weather this year, which negatively affected the harvest,” explains Marek Janečka from J&T Bank.

At the same time, Africa supplies up to 70 percent of the global supply of cocoa beans in the world. At the same time, the worldwide consumption of cocoa is growing every year. Its price growth is thus still accelerating, since the beginning of October this year, cocoa has become more expensive by thirty percent, while prices are currently close to a 46-year price maximum. “The result is a deficit on the cocoa bean market of an estimated amount of up to 160,000 tons and the historically lowest ratio of stocks to consumption,” adds Janečka.