| PROSPERITY PUB MARKET TALK
Cocoa Prices Spike
Brace yourselves, chocoholics – your cocoa cravings are about to get a whole lot pricier.
Cocoa prices just skyrocketed to a record-breaking $10,000 per ton.
It’s all thanks to a nasty combo of bad weather and crop diseases pummeling West Africa, which is the world's biggest cocoa producer (think 75% of the world's supply!).
Resident commodities expert, Geof Smith, says get ready for sticker shock at the checkout. Retail chocolate prices are on an upward trajectory, and could be likely to last a year or so after this latest price surge.
Just a year ago, cocoa was going for a cool $2,500 a ton… Those were the good old days.
Here's the real kicker: Geof tells us this shortage isn't just a blip on the radar.
West African farmers, already strapped for cash, rely on loans based on their crop yields. With smaller harvests, they can't secure funding to plant new trees, leaving existing ones vulnerable and production dwindling.
Experts predict a shortfall of 300,000 to 500,000 tons this season — a recipe for continued price hikes.
So, what does this mean for your grandma's legendary chocolate chip cookies? Probably not a complete meltdown (yet).
But expect those grocery bills to take a little more out of your wallet. The bigger concern lies with big chocolate companies like Hershey's who might have to get creative with portion sizes or recipe tweaks.
The bottom line? Savor those pre-made brownies while you can, folks.
This cocoa crisis is no laughing matter. Unless, of course, you find humor in the potential black market for chocolate bars.
Meanwhile, Geof gave us a pick to play, telling us that he expects Hersey (HSY) to be bearish, especially after laying off 5% of their workforce yesterday…
— The Prosperity Pub Team
| | | | |
|
|
0 Response to "Cocoa Hits All Time Highs (yes, as in chocolate)"
Post a Comment