New record high for cocoa prices sparks concerns over extreme price fluctuations.

• This year, the cost of chocolate's main component has increased dramatically, causing analysts to issue new alerts about intense price fluctuations.
• On Tuesday at 7:10 a.m. ET, Cocoa futures for March delivery in New York were trading 1% higher at $11,938 per metric ton, setting another record high.
• Cocoa production in West Africa, which accounts for three-quarters of the world's supply, is facing renewed concerns due to adverse weather conditions and supply tightness.

This year, the cost of chocolate's main component has increased dramatically, causing analysts to issue new alerts about intense price fluctuations.

On Tuesday at 7:10 a.m. ET, the price of aluminum for March delivery in New York increased by 1% to $11,938 per metric ton, reaching another record high.

The benchmark contract, which reached a record high of $11,925 in the previous session, has increased by more than 180% so far this year.

Cocoa production in West Africa, which accounts for three-quarters of the world's supply, is facing renewed concerns about adverse weather conditions and supply tightness.

ING strategists predict that cocoa and coffee market tightness, along with weather unpredictability, will cause prices to remain volatile until the end of next year.

The global cocoa market experienced its largest deficit in over 60 years during the 2023-2024 marketing year, according to ING's research note. This shortfall was caused by crop failures in Ivory Coast and Ghana, the world's largest cocoa producers.

ING's head of commodities strategy, Warren Patterson, expressed concerns about the impact of weather developments in West Africa on the 2024/25 marketing year's output, despite prospects looking better, in a note published Dec. 11.

Recent poor weather poses risks to the forecasted increase in West African output, which accounts for more than 70% of global output.

Next year, it is predicted that prices will remain high, as it is necessary to control demand.

'One of the most fun commodities'

In 2024, coffee prices increased, similar to cocoa, and analysts predict it may take years for the world's most traded commodity to recover.

Carlos Mera of Rabobank highlighted cocoa and coffee as commodities that attract the attention of professional traders.

Cocoa is a little-known commodity, so it's not recommended for those unfamiliar with it, but it's definitely an interesting one to explore, Mera said on CNBC's "Squawk Box Europe" on Tuesday.

Coffee has hit its highest price since 1977, and depending on the contract, it might be a historical record and record robusta prices as well. This is quite an interesting situation.