Cocoa futures prices have fallen to 20-month lows, dropping by about half compared to recent peaks.
The most active cocoa bean futures contract in New York fell to $6,150 per tonne during the session. Last December, the contract traded above $12,000.
In London, cocoa futures are trading at £4,262 ($5,713) per ton, down 58% from the multi-year highs seen last April.
The decline in cocoa prices was the result of a reduction in consumer demand, which, in turn, was caused by a sharp increase in prices in recent years, the Financial Times writes, citing analysts. In addition, experts expect a good harvest of cocoa beans in the largest producing countries located in West Africa.
“Prices rose to crazy heights and could not remain at such levels for long,” said Rabobank analyst Oran van Dort. “Quotations have been falling for most of this year, but a particularly pronounced downward trend has been observed since mid-August.”
