Chocolate is more expensive than copper

Cacao topped out at record prices of US$10,000 the ton, making it more expensive than copper, the valuable metal used in everything from wiring to plumbing to coins. The Dominican Republic is a major producer of fine cacao and stands to benefit.

For the first time in history, the price of cacao is higher than copper on the international commodities market. According to a report in the Hoy newspaper, the price of cacao has more than doubled since the start of the year, and as much as 60% in March alone.

On the London Stock Exchange cacao prices have fluctuated by more than £600 in just one day.

A year ago, such fluctuations were in the range of £15 to £20. Apparently, this abrupt change in the price of cacao is closely related to the reduced harvest in West Africa where climate conditions, aging plantations, and fungus attacks on the cacao trees have contributed to the reduction in production.

There is “panic” among chocolate producers. Another expert in the cacao market says that the entire focus right now is “buy, buy, buy.

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Financial Post

1 April 2024