See Why Filling Up Your Easter Basket Is So Expensive, Despite Much-Lower Cocoa Prices: Underpinning the surge in retail prices is a historical move seen in futures for cocoa by Kirk Maltais of The WSJ. Excerpts:
"Global supply chain headaches have been hitting chocolate hard"
"The average cost for a package of chocolate candy through March 22 was $3.68 a unit"
"That’s up 10% from the same 52-week period last year."
"a shopper spending $20 on packages of Reese’s Peanut Butter Eggs at Target could buy five bags of the candy for $3.99 each in 2020. Those same packages are now $6.29"
"In 2024, prices for cocoa futures trading on the Intercontinental Exchange rose exponentially, going from around $4,200 a metric ton to start to year to peaking at more than $12,000 a ton by December."
"Prices have since tumbled back to historical norms, last month falling to below $3,000 a ton for the first time in nearly three years."
"What fueled the run-up in cocoa futures was poor weather in West African nations"
"the source of roughly 70% of the world’s cocoa beans. Excessive rainfall creating disease issues for beans limited the amount of cocoa coming out of West African ports."
"Pricing across consumer products tends to adjust with a lag, reflecting hedging practices and inventory cycles"
"World cocoa production is up 8% from last year"
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