Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.
Business

Valentine’s Day chocolate prices set to break hearts after cocoa prices hit record high

Consumers planning to buy chocolates for their loved ones this Valentine’s Day may be hit with sticker shock, and not just because of inflation.

The price of cocoa – which has risen due to crop damage in West Africa – hit a record high last week, and ongoing shortages are putting pressure on chocolate makers, who in turn are passing on the increase in prices for customers.

Global cocoa prices hit a new record for the ninth consecutive day on Friday, sparking panic over the risk of supply shortages after a double whammy of extreme weather and cocoa plant disease hit in the region’s worst-hit region. producer in West Africa.

Chocolates packaged for Valentine’s Day, February 2, 2024, in Chicago. Cocoa prices have been climbing, recently reaching record levels and driving up the price of chocolate. (Photo illustration by Scott Olson/Getty Images)

Benchmark ICE London cocoa futures hit a record 4,916 pounds per tonne on Friday before closing 2.1% higher at 4,757 pounds/tonne. Prices have more than doubled since the start of last year.

PIZZA HUT OFFERS BREAK-UP HOT HONEY PIZZAS AHEAD OF VALENTINE’S DAY: “DELIVERING SPICY NEWS”

In New York, benchmark ICE cocoa futures hit a new high of $6,030 per tonne on Friday, closing up 1.4% at $5,888 per tonne, after nearly doubling since the start of trading. ‘last year.

chart showing cocoa prices over the past year

The supply shortage is driving up the price of cocoa, which reached a record high last week. (Commercial economics)

A Reuters cocoa poll due earlier this month predicted a global deficit of 375,000 tonnes for the 2023/24 season, more than double that indicated in the previous August poll, and marking a third consecutive deficit for the market.

BURRITO AND BIG MAC PRICES IN CALIFORNIA RISE AS Wages Rise: ‘SOMEONE HAS TO PAY,’ SAYS FAT BRANDS FOUNDER

The price surge is trickling down to retail shelves, with Hershey expecting a further slowdown in demand for its products from money-conscious customers after its sales volumes fell 6.6% in fourth trimester.

Hershey kisses on a shelf

Hershey Co. said last week that it expects high cocoa prices to limit its profits next year. (Luke Sharrett/Bloomberg via /Getty Images)

Teleprinter Security Last Change Change %
HSY THE HERSHEY Co. 194.00 -1.39 -0.71%

The chocolate giant, whose shares are down about 30% from their May 2023 peak, also said last week that it expects rising cocoa prices to limit growth in its profits this year.

Volumes at its rival, Cadbury maker Mondelez, also fell last quarter.

Teleprinter Security Last Change Change %
MDLZ MONDÉLEZ INTERNATIONAL INC. 73.17 -1.59 -2.13%

Mondelez International, Inc.

“47 years ago, almost every major price drop was followed by a massive breakout of 20-50%, within one to two years. Is this situation different? According to my sources in the cocoa trees of West Africa… YES! ” said Jim Roemer, meteorologist and commodities trading advisor at Best Weather Inc.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“At least for now, the crisis situation could well last for another month or two,” he added.

Reuters contributed to this report.

Gn En bus

Back to top button