Cocoa Price

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Cocoa price changes from year to year.

The price of cocoa is known to be unstable. Changes in the price of cocoa beans are also the result of political conditions, as cocoa production is concentrated in politically unstable regions. But what happened in 2010 when the price of cocoa was at its highest for thirty years?

Daily Telegraph reported in 2010 how the mystical shopper bought 241,000 tons of cocoa beans. It is equivalent to the entire supply of the commodity in Europe. This single trade affected the global cocoa market and raised the price of cocoa to the highest level since 1977. The analysts did not believe the buyer was a big chocolate company. According to Telegraph, the purpose of the wholesale trade was to increase the price of cocoa. Mystical shopper was later revealed to be a British businessman Anthony Ward, who in 2002, in a similar style, earned £ 40 million in two months. After buying cocoa beans, Ward kept them in stores across Europe, and then watched the price of cocoa increase.

The price of cocoa continued to raise after that event. High price was explained by at least the increased demand. In addition to Europe, chocolate consuming was increasing in Asia, and production could not meet consumption. Many believed in 2014 that the price of cocoa would remain high.

However, the price of cocoa has steadily decreased for a few years. Forecasts of overproduction and good harvests in South America and West Africa, has pressed cocoa price down. Increased production is pushing down the price as well, and the price of cocoa is now (at 2017) the lowest level since 2008.

2005          1549,89

2010          3522,10

2015          2961,94

2017          2195,06

Prices in January – dollar/ton – Nasdaq

Source: Kauppalehti, Daily Telegrapf, Nasdaq

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