Even though Bitcoin managed to record impressive gains in 2024, it is not the best-performing commodity of the year.
According to data provided by MarketWatch, cocoa is up by a whopping 185% this year.
Cocoa prices have exploded due to significant supply shortages due to declining West African yields.
The vast majority of the world's cocoa, the magical ingredient that is needed for making chocolate, ice cream and other products, is produced by Ghana, Cameroon, as well as several other African countries.
This year, there has been a significant drop in production due to the double-whammy of negative climate factors and the lack of support for local cocoa farming communities. Moreover, the devastating cacao swollen shoot virus disease (CSSVD) has also damaged a significant portion of harvests.
Alex DovbnyaIn February, the Financial Times reported that speculative traders started betting on cocoa futures, fueling a massive rally. This frenzy initiated by hedge funds complicated the hedging process for cocoa processors.
After paring some gains recorded earlier this year, cocoa prices soared once again in the fourth quarter, while supply fears continue to persist. Last week, cocoa prices surpassed $12,000 a ton, hitting yet another all-time high.
For comparison, Bitcoin is up by 126.05% on the year-to-date basis, currently trading at $95,200.
Some of the other top-gaining commodities include orange juice and natural gas. They have rallied by 73% and 43%, respectively.
There are also some commodities that are in the red this year. For instance, palladium and soybeans are down 18% and 26%, respectively.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Dan Burgin
Vladislav Sopov