%Cocoa price have reached an all-time high leading into the Easter long weekend, rising above $10,000 U.S. per metric ton for the first time ever.

Cocoa has reached a record high as global supply constraints push prices steadily higher.

The main ingredient in chocolate is currently trading at $10,030 U.S. per metric ton, the first time the commodity has ever been above the $10,000 U.S. mark.

So far in 2024, Cocoa prices have risen nearly 40%.

The reason for the price spike is that the Ivory Coast in Africa, which is the biggest coca producer in the world, has been hit by flooding and then hotter-than-usual temperatures that are causing drought conditions and diminishing crop yields.

The combination of flooding and then excessive heat has also led to an outbreak of cacao swollen shoot virus that is harming the cocoa crop.

The world’s supply of cocoa is now on course for a third straight annual supply deficit.

The latest price rise comes as demand for chocolate around the world skyrockets in the lead-up to the Easter weekend.

Easter is typically a peak period for chocolate consumption during the year as kids and adults enjoy chocolate bunnies and eggs.

%Commodities traders say they are now focusing on West Africa’s upcoming “mid-crop,” which is the smaller of two annual harvests.

However, the cocoa farm regulator in Ivory Coast has said they are bracing for this year’s mid-crop to also shrink due to poor growing conditions and disease outbreak.

The higher prices for cocoa are hurting the stocks of chocolate and confectionary companies such as %HersheyCo (NYSE: $HSY), whose share price has fallen 23% in the last 12 months and currently trades at $192.26 U.S. per share.