Chocolate Prices Set to Rise from Cocoa and Sugar Futures Reaching Yearly Highs

Chocolate prices are set to rise from increasing trading prices in Cocoa Futures (/CC) and Sugar Futures (/SB). Cocoa Futures are up 28.84% YTD and 33% since inception. Sugar Futures are up 18% YTD and 109% in the last five years. Both ingredients are essential for producing Chocolate. Chaotic weather conditions around mid-harvest in the Ivory Coast and western African regions have stagnated cultivation and transportation of the commodity leading to supply shortages. Chocolate producer usually order (contract) supplies years in advance for the commodity due to its high demand globally. Europe, being its highest consumer, surges to all time highs in consumption of chocolate.

Publicly traded companies such as Hershey's ($HSY), Mondelez International Inc ($MDLZ), and, John B Sanfilippo & Son Inc ($JBSS) are trading at all time highs.

We could see increased volatility in these equities as the underlying commodity flirts with all time levels. Let's see how the 🎲 roll.