Chocolate is King: best-performing commodity in 2024

in Economics7 days ago

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Cocoa: +195%
Bitcoin: +121%
Natural Gas: +45%
Silver: +21%
Gold: +27%
Nasdaq 100 $QQQ: +25.5%
S&P 500 $SPY: +25%
Dow $DJI: +13%
Russell 2000 $IWM: +11%
10-Year Treasury Yield: +7% (70bps)
Dollar $DXY: +7%
WTI Crude: Flat
Cboe Volatility Index $VIX: +39%

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Cocoa was the best-performing commodity in 2024, with a return of 195%

It performed better than Natural Gas, Gold, Silver and Crude oil

A worldwide cocoa scarcity that has lasted since early 2024 is mostly to blame for the increase in cocoa prices. Around 80% of the world's cocoa production comes from West Africa, where crops have been devastated by disease pressures, climate change, and dangerous weather. As a result, cocoa supply is at an all-time low.

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The price of cocoa has soared in recent months, hitting all-time highs earlier this year of around $10,000 per metric ton. Since then, prices have somewhat decreased, but they are still high because of ongoing supply-side pressures.