Cocoa and coffee are poised to close 2024 as the biggest gainers among commodities for a second year on a global supply deficit.
Top cocoa producers Côte d'Ivoire and Ghana have suffered crop losses due to adverse weather, bean disease, smuggling and reduced plantations.
It's bad news for chocolate lovers, as cocoa nearly tripled in price over 2024, far outpacing gains in other commodities.
It hit a record high of $12,931 a metric ton in New York earlier this month on forecasts of lower supply for a fourth successive season in West Africa following dry weather.
"The softs sector, led by cocoa and coffee, has been the main winner amid adverse weather in key growing regions, highlighting the risk to prices when products like these are produced and sourced from relatively small geographical areas," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
Dryness has strained coffee supplies as well. ICE Arabica coffee prices soared to their highest in more than 40 years amid fears that severe drought earlier this year damaged the upcoming crop in top producer Brazil.
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