Cocoa prices are trading like meme coins: Cocoa prices in New York are now down over -50% from their all-time high in 2024, to ~6,000 per ton, the lowest in nearly 2 years. This comes after cocoa prices rose over +600% in 2023 and 2024. Meanwhile, London prices, which almost tripled in early 2024, have declined -58% from their April 2024 peak, to 4,262, the lowest in 20 months. The drop reflects weaker consumer demand after last year’s price surge and expectations of a larger crop due to improved weather in West Africa. Additionally, speculators have exited long positions with many now betting on further declines. However, New York prices are still far above the 20-year average of ~2,700 per ton. Unprecedented volatility.(The Kobeissi Letter)