Cocoa prices increase by 15.2% in first four months of 2023 – BoG

Cocoa prices increase by 15.2% in first four months of 2023 – BoG

According to data released by the Bank of Ghana, the cocoa industry experienced a substantial increase in prices during the first four months of 2023.

The price of cocoa rose by $384.51 per tonne, representing a significant growth of 15.2%. This upward trend was notable when comparing the prices in December 2022, which were recorded at $2,539.86 per tonne, and the prices in April 2023, which reached $2,924.37 per tonne.

This increase of 15.2% was calculated based on the year-to-date performance and indicated a 13.0% rise when compared on a year-on-year basis.

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Several factors contributed to this impressive surge in cocoa prices. Firstly, lower production volumes played a role in driving up prices. Additionally, the grinding activities in Ivory Coast, a leading cocoa producer, experienced an increase, further fueling the upward movement of prices.

Lastly, the global demand for cocoa witnessed a notable rise during this period, contributing to the overall price increase. As a result of these factors, the export volume of cocoa beans experienced a substantial growth of 30.3% during the first four months of 2023, amounting to $950.8 million.

In the gold market, prices remained robust throughout the year. Starting the year at $1,796.2 per fine ounce in January, the price of gold soared to an all-time high of $2,000.7 per fine ounce in April 2023, reflecting a steady year-on-year growth of 3.4%.

The strength of the gold price can be attributed to various factors that influenced the market dynamics. Economic uncertainty, particularly fears of a potential recession, played a significant role in boosting the demand for gold as a safe-haven investment.

Furthermore, the expectation of lower interest rate hikes due to easing inflation and the ongoing banking crisis in the United States and Europe further supported the upward trajectory of gold prices.

In contrast, crude oil prices experienced a broad downward trend since June 2022. Starting at $117.2 per barrel in June 2022, prices steadily declined to $81.3 per barrel by December 2022. Although there was a slight increase to $82.7 per barrel in April 2023, the overall trend remained downward.

This decline in oil prices was influenced by several factors, including concerns about the global economy’s health and the outlook for oil demand. Despite the announced production cuts by OPEC+ to stabilize the market, these factors continued to exert pressure on oil prices.