Expensive Chocolate Due to Falling Cocoa Prices Prompts shrewd Investors' Strategic Wagers
Chocolate Prices Predicted to Dip in 2025
Get ready to sweeten your savings, folks! You might have noticed that chocolate prices have been on the rise recently. But buckle up, because in 2025, things are expected to change. Your wallet might thank you!
Take Lindt & Sprüngli, for example. They've already hiked their prices and have plans for another increase in 2025. But this could mark the end of the price rise train. Why? Well, the International Cocoa Organization (ICCO) predicts a surplus of cocoa beans for the 2024/25 crop year, something we haven't seen since three years of deficits.
Now, BÖRSE ONLINE foretold this development back in January, suggesting daring bets on falling cocoa prices. Remember when a ton of beans traded for over $12,800 in December? A correction was already on the cards. And it did happen! In just nine weeks, the K.-o.-Put doubled, and the K.-o.-Put with a smaller leverage increased by more than 70 percent. So, if you're a risk-taker and managed to get in on that, congrats!
But if you missed that boat, there's still time to make a move. The speculation is far from over. Weather plays a significant role in cocoa prices, especially in the Ivory Coast, the world's largest producer. Heavy rains are being reported, and now we just need some sunshine to make sure those cocoa pods develop well. If they do, the mid-crop, which runs from April to September and accounts for about a quarter of the harvest, could yield good returns, putting downward pressure on prices.
Long-term, cocoa prices will eventually sway in favor of farmers due to the increased income, allowing them to invest more in maintaining cocoa plantations. This could boost the supply of beans by almost eight percent. At the same time, the industry expects a five percent decrease in demand. So, the ICCO estimates a surplus of beans - the first after three years of shortages.
For the adventurous investors, the editorial team has picked two put options with different leverage. Remember, the higher the leverage, the higher the potential profit if the underlying asset declines. But these derivatives lose value quickly when cocoa prices rise. So, it's crucial to set individual stop-loss levels.
Stay tuned for more updates! The cocoa market is a roller coaster ride, and we can't wait to see where it takes us next. 🎢🍫
Prepare for a potential decrease in chocolate prices as the International Cocoa Organization predicts a surplus of cocoa beans for the 2024/25 crop year, which could be advantageous for both personal-finance and investors who are interested in financing opportunities related to cocoa. In the meantime, there are still investing options for those willing to take risks, as BÖRSE ONLINE previously suggested daring bets on falling cocoa prices, which could lead to potential profits in the current market volatility.
