CHICAGO: Cocoa finished 2024 as the top-performing major commodity, its massive annual gain driven by supply fears and market volatility.On track for a 172% gain over the past 12 months, cocoa’s tear has been driven by a series of poor harvests in Ivory Coast and Ghana, where the majority of the crop is grown.
Dwindling global stockpiles are putting pressure on both buyers and chocolate makers. Record prices have thinned out liquidity to the lowest in over a decade, as margin calls climbed and positions became increasingly costly to hold.
That low futures liquidity added to the wild swings, with prices moving more than a US$1,000 on some of the most volatile trading days.
Weather conditions, including the dry and dusty Harmattan winds, are expected to remain challenging for West Africa’s ongoing cocoa season. — Bloomberg
