Cocoa Prices Surge Over $9,000/Ton As Ghana, Ivory Coast Crops Suffer

• Cocoa futures prices have surged over $9,000/ton, significantly higher than other commodities like copper. Returns have outpaced investments like Nvidia and Bitcoin in the last month (+47%) and year-to-date (+130%).

• Severe weather and crop disease in Ghana and Ivory Coast, responsible for 70% of global cocoa, have reduced production. Smuggling is expected to take advantage of higher prices.

• Ghana Cocoa Board could lose funding due to bean shortages, further restricting resources for farmers.

• EU deforestation regulations could limit output if farms don't comply. Analysts recommend avoiding 3 cocoa-exposed stocks amid the price surge.

• Speculation attributed to illiquidity and lack of sellers, similar to European gas after Ukraine war. Question is when, not if, the "movie" of a price correction will play out.