Futures in the United States opened this morning with an initial drop of 4.5%, but this deepened as the session progressed and culminated in an intraday drop of 17% that subsequently narrowed to -13.73%.

Cocoa prices plummeted this Monday by more than 13% from the record of more than US$ 10,000 per ton that had been sustained since the beginning of April. Prices exceeded the $10,000 per ton mark for the first time in history on March 26, but the "exuberance " around this raw material now deflates and the market stabilizes.

Futures in the United States opened this morning with an initial drop of 4.5%, but this deepened as the session progressed and culminated in an intraday drop of 17% that subsequently narrowed to -13.73%.

This left cocoa at US$9,139 per ton at around 1:30 p.m. local time in New York. For reference, just twelve months earlier it was trading at around US$2,900.

The drop comes as the number of contracts in circulation continues to decline and margin requirements to trade them increase. Likewise, cocoa supply could be somewhat relieved by recent rains in West Africa, the main producing area.

In any case, Ghana has already been forced to delay its deliveries in recent weeks due to a lack of cocoa beans and difficulties in fulfilling contracts in previous seasons due to lower harvesting. For its part, Ivory Coast also asked buyers to wait until mid-harvest to mitigate shortages.

Despite the possible price cool down, the high prices of cocoa could translate into higher chocolate costs throughout the year. This has led some manufacturers to reduce the size of the bars marketed or to promote varieties with alternative ingredients to contain rising prices.

In addition, supply could be further compromised once European Union rules aimed at preventing the marketing of products that contribute to deforestation come into force.