The election year, coming together with the AI and crypto development might cover up the most sensational growth of the year. Will cocoa price in 2025 exceed expectations yet again?
Cocoa price chart: 2025 means another rise?
Traders interested in investing, especially when it comes to volatile assets like agricultural commodities, have to make decisions thoroughly. The recent performance of COCOA in the market is presented below:
COCOA’s long positions were very profitable at the beginning and end of the year. In December, the commodity reached its ATH of $12,906 per metric ton.
The COCOA price chart 2025 surely won’t look exactly the same. However, there are some noticeable events in 2024 that traders have been deeply analyzing for the last few months:
- From January 1st to December 31st, COCOA’s price has increased by almost 300%.
- The most noticeable rise occurred in the first quarter of 2024.
- Due to its tight connection with the U.S. Dollar, some agricultural commodities, such as COFFEE, significantly increased after the U.S. elections. As usual, in 2024, COCOA stood at the forefront of that remarkable run.
Considering all of these aspects, the question has to be asked:
Why is COCOA price rising?
This significant increase was primarily due to adverse weather conditions in West Africa, particularly severe droughts in Ghana and the Ivory Coast, the leading cocoa producers. The first months of the year brought serious problems with the supply chain. The demand hasn’t fallen down, and supply was much lower. That’s the main reason why the COCOA price is rising.
As COCOA gains grow mainly in the equator area, the first months of the year are crucial. During the first quarter, crops must be ready to be harvested. If the weather conditions are unpredictable, it will probably snowball for the next few months.
Even though Southeast Asia and Latin American countries have their plantations, traders interested in COCOA price 2025 mainly focus on the situation in Western Africa. Over 70% of worldwide crops are in this region, with over 55% in two countries – Ghana and the Ivory Coast. That’s the main difference between this COCOA and the price of COFFEE, which is more dependent on other regions, especially Brazil.
What’s next?
It is impossible to predict how the COCOA will react in 2025. Nevertheless, traders have to be alert on several aspects. These include weather conditions and political issues in countries with significant cocoa plantations. Moreover, the impact of the U.S. Dollar on agricultural commodities’ prices can also heavily influence them.
Read more about:
