Cocoa prices tumble 19%, giving up a chunk of their record-setting gains

• Cocoa prices last traded at around $7,175, after dropping about $1,700 per metric ton.
• Earlier in the year, cocoa futures hit a record of $11,722 per metric ton.
• Cocoa prices soared this year amid a shortage of cocoa beans.

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A farmers holds cocoa beans while he is drying them at a village in Sinfra, Ivory Coast, on April 29, 2023.

Luc Gnago | Reuters

Cocoa prices dropped more than 19% on Monday, giving up a large part of the strong gains that lifted them to all-time highs earlier this year.

Prices last traded at around $7,175, after dropping about $1,700 per metric ton. It would be the biggest one-day drop for the commodity since at least 1980.

Earlier in the year, cocoa futures hit a record of $11,722 per metric ton.

Cocoa prices soared this year amid a shortage of cocoa beans due to supply disruptions, including heavy rains and disease. The surge also heightened fears of steeper prices at the grocery store for consumers.

Cocoa YTD

Despite Monday's steep decline, cocoa is up nearly 70% year to date and 137% over the past 12 months.