Cocoa Futures Hit Record High Amidst Processing Surge | Bloomberg

Cocoa futures hit a record-breaking $11,722 per ton on Friday, defying a global shortage and skyrocketing prices, reports Bloomberg.

This surge comes despite concerns about a supply crunch. Data reveals North American chocolate processing ("grinds") rose nearly 4% in the first quarter compared to last year. Similar trends were observed in Europe and Asia, albeit with smaller declines in grind levels.

Analysts believe this resilience is due to existing inventories purchased before the recent price hikes. "We haven't felt the full impact yet," says Jack Scoville of Price Futures Group to Bloomberg. He expects higher prices to eventually dampen grind levels.

Chocolate makers face a tough choice: continue grinding with potentially lower margins, or risk even steeper costs in the future.