Cocoa Prices Plummet to 20-Month Low Amid Supply Shocks in West Africa

The cocoa price has plummeted to a 20-month low, ending a two-year rally driven by market highs and squeezing chocolate manufacturers worldwide. Prices have fallen by 50%, with London prices down 58% from their peak.

The decline is attributed to a drop in consumer demand, better crop expectations, and supply shocks from West Africa, which produces 60% of the world's cocoa. Governments in the region have raised guaranteed prices for farmers to boost supply, despite challenges like crop diseases and climate risks.