**Cocoa Prices Increase:** On Wednesday, July ICE NY cocoa closed up by 173 points (+1.77%) at $9,922 per ton, while July ICE London cocoa rose 73 points (+1.13%) to $6,513 per ton. The increase is attributed to dollar weakness prompting short covering, although gains were muted by a stronger British pound.
**Production and Quality Concerns:** Ivory Coast farmers’ cocoa exports from October 1 to June 1 reached 1.6 million metric tons, a 6.7% increase from last year, but lower than December’s 35% increase. Quality concerns are significant, with about 5-6% of the mid-crop being deemed poor quality, leading to rejections by processors. The projected mid-crop for Ivory Coast is 400,000 metric tons, down 9% from last year.
**Global Supply Deficit:** The International Cocoa Organization (ICCO) has reported a global cocoa deficit of 494,000 metric tons for 2023/24, the largest deficit in over 60 years, with production expected to decline by 13.1% year-on-year to 4.38 million metric tons. The stocks/grindings ratio stands at a 46-year low of 27.0%.
