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The price of cocoa drops more than 13% from the record prices of more than 10 thousand dollars per ton that had been sustained since the beginning of April.
Its value exceeded the historical record for the first time on March 26.
In the United States, since the morning of this Monday, April 29, 2024, an initial drop of 4.5% has been reported but the day ends with -13.73%.
This leaves cocoa at $9,139 and that just twelve months earlier it was trading at around $2,900 per ton.
The drop comes as the number of contracts in circulation continues to decline and margin requirements for trading them increase.
Likewise, the supply of cocoa could be somewhat alleviated by the recent rains in West Africa, main producing area and largest global supplier.
Cocoa reached 10 thousand dollars per ton
Ghana has already had to delay its deliveries due to a lack of cocoa beans and difficulties in fulfilling contracts in the previous seasons due to lower harvesting.
Ivory Coast also asked buyers to wait until mid-harvest to mitigate shortages that have been in place since early March.
Despite the possible drop in prices, the high price of cocoa can keep the value of chocolate high throughout the year.
This leads to some manufacturers reduce the size of bars or promote varieties with alternative ingredients to contain rising prices.
In addition, supply could be further compromised once European Union rules aimed at prevent the marketing of products that contribute to deforestation.