2023 Cocoa Price in Market

The Cocoa Market History

The history of the cocoa market is interesting. Evidence of the trade of cocoa beans, which are used to make chocolate, dates back to the pre-Columbian Maya and Aztec civilizations in Central and South America. 

During the 16th century, the Spanish introduced cocoa to Europe, where it soon gained popularity, and this led to an expansion of the world's cocoa trade. 

Today, cocoa is a precious commodity with a multi-billion dollar worldwide market. 

The demand for chocolate, which makes up the majority of cocoa consumption globally, is what essentially drives the cocoa market, and Africa produces 70% of the world's cocoa.

Numerous variables, such as the state of the economy, political unrest, and shifts in consumer tastes, have impacted the market over time.

Benefits of Cocoa

There are several health advantages of cocoa, Four of which are. 

Flavanols, which are antioxidants and can aid to reduce blood pressure and lower the risk of heart disease and diabetes, are present in large quantities in cocoa beans. 

Cocoa also contains magnesium and calcium, which are good for bones and helps ease anxiety and tension.

Thirdly cocoa has been demonstrated to have the ability to elevate mood and may enhance cognitive performance.

According to the Library of medicine in collaboration with Google scholar cocoa butter is a strong moisturizer and it is efficient in the making of body cream.

An example is the Palma cocoa butter cream sold in Nigeria at a price between N4500 and N11500. 

Who are the Top Producers of Cocoa In the World?

Ivory Coast, Ghana, and Indonesia are the leading three producers of cocoa, making up over 70% of global output. Nigeria, Cameroon, Brazil, and Ecuador are other significant producers making up about 20% of global output, while other countries produce 10%.

Cocoa Prices in the Global Market

The global cocoa price in the market is driven by factors such as the demand for chocolate and other cocoa-based products, weather conditions, government policies, and social vices in cocoa plantations.

Social vices that are affecting the production of cocoa include human right violation, child labor, and the illiteracy of farmers. Ivory cost the world's largest producer of cocoa is bent on tackling these issues head-on

In recent years, there has been a growing demand for cocoa in emerging markets, such as China and India, which has led to an increase in prices.

The price of cocoa in the international market on March 22 is $2600, even though a lot of Analysts believe the price may fall by 3.5%, due to weather variations in west Africa, the price is still expected to maintain the $2000 range for a while.

London Cocoa

Like the Nigerian Stock Exchange, London Cocoa prices are the benchmark for the international trade of cocoa.

Trading cocoa on the London International Financial Futures and Options Exchange is referred to as "London cocoa." (LIFFE). A significant exchange for trading cocoa futures and options is LIFFE. 

With the help of these financial instruments, buyers and sellers may agree on a price for the delivery of cocoa at a future date.

European chocolate producers utilize the London cocoa market largely as a hedge against sudden changes in the cocoa market's price. 

Cocoa prices traded in physical markets, such as the New York Board of Trade, serving as the basis for London's cocoa futures and options contracts.