No matter how trivial it may sound, there are financial assets in the commodity markets that add 2-5% growth every day. Such a price jump, especially in a directional movement, is much greater than that of the most liquid cryptocurrencies.
Due to bad weather and cataclysms on the planet, cocoa and orange juice are now becoming very expensive. As they say in trading circles, “a rocket into space,” and every day.
For example, CNBC reports that orange juice futures rose to $3.69 per pound, a new record. The reason for the rise in prices was poor harvests in the state of Florida, a key producer in the United States. Juice prices increased by 13% in a month and by almost 78% in a year.
Cocoa is growing faster than Bitcoin and Ethereum combined.
Cocoa bean prices have soared to their highest level in a decade. As of 2023, the cost of New York cocoa futures reached $3,500 per 1 ton. The last time such a high price was observed in 2011. This is due to various problems in West Africa, a key region supplying cocoa beans to the world market. Local cocoa production is affected by heavy rains. The West African countries of Côte d’Ivoire and Ghana are important suppliers of cocoa beans to the world market, both of which are already experiencing problems growing the product. Bloomberg estimates that the bean harvest in Côte d’Ivoire will decrease by 20% compared to last year, and in Ghana it will fall below the historical average.
Let me make a joke, gentlemen: if there is a food crisis on the planet, then only cockroaches and financial market traders will survive.
