Ryan Dezember of The Wall Street Journal reports prices for cocoa, the key ingredient in chocolate, have surged to records. He writes:
Cocoa prices have climbed past a record set nearly a half-century ago, costing chocolate makers, bakers and aficionados alike.
The sharp climb in price for chocolate’s main ingredient started with bad weather in West Africa, where much of the world’s cocoa is grown. Speculators piling into one of the hottest trades outside of artificial intelligence have added fuel to the rally.
Cocoa futures rose another $1,105 a metric ton over Thursday and Friday to end the week at $8,018 in New York. That is more than three times the price a year ago and 42% above the previous record set in July 1977 during another period of poor growing conditions in West Africa that shrank global supply. […]
“We worry Lindt and Barry may face challenges with raising prices in a largely disinflationary environment, which could pressure volumes and margins near term,” they told clients.
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