Last year, palladium was the best performing commodity in the world, rising by more than 30%. This year, an agricultural commodity may be leading the way.

YTD, cocoa has gained by more than 16%. The upward climb is associated with the perceived climatic changes in the Western African countries of Ghana and Ivory Coast.

As you know, in the past few decades, the world population has exploded, reaching more than 7 billion. As this has happened, the world economy, especially in Asian countries has continued to grow. Today, Asian countries have more billionaires than those in Europe. They may also soon pass those in the United States.

The growth in the middle class has led to more demand for cocoa-based products like chocolate. At the same time, better technology has made it possible for cocoa producers to develop more crops. It has also made it possible for these companies to not only produce but also transport and market cocoa in a faster way.

Cocoa futures are now trading at $2160. As shown, in the past one year, the commodity has been having an excellent support and resistance pattern. If the pattern continues to hold, the price may continue moving high and possibly cross the yearly high of $2236.