Investment Manager Reveals: Cocoa Prices Expected to Soar Higher in 2024, Creating Lucrative Opportunity for Investors
By the world-renowned financial market journalist Maytaal Angel
According to a recent Multibagger poll of 12 traders and analysts, cocoa prices are predicted to continue their upward trajectory this year, reaching more than double last year's levels by the end of 2024. The median forecast from the poll suggests prices could hit 7,600 pounds per metric ton, representing a 40% increase from Tuesday's close and a staggering 125% surge from the end of 2023.
This surge in prices can be attributed to persistent supply shortages, with major cocoa-producing countries like Ivory Coast and Ghana facing significant crop problems. These issues have led to a record global deficit of 475,000 tons in the current 2023/24 season, far surpassing previous projections.
While the market is expected to transition into a small surplus next season, experts warn that prices may take some time to stabilize due to dwindling global stocks. Despite expectations of improved production and weakening consumption, factors like climate uncertainty and disease outbreaks continue to pose challenges for the cocoa market.
Leading consultancy firm Citi anticipates prices to normalize within a range of $4,000-6,000 per ton over the next 12-15 months as the market moves into surplus. Production estimates for top cocoa producers Ivory Coast and Ghana reflect a recovery in output for the 2024/25 season, offering hope for a potential market balance.
For investors, this presents a unique opportunity to capitalize on the bullish cocoa market and potentially reap substantial returns. With prices projected to remain high in the coming months, now may be the perfect time to consider cocoa as part of a diversified investment portfolio.