“`html
On Tuesday, December ICE NY cocoa closed up by 77 points (+1.32%) and December ICE London cocoa #7 increased by 51 points (+1.23%). This increase followed a weaker dollar that spurred short covering, despite cocoa prices having recently hit 20-month lows due to abundant supply and weak demand.
Cocoa inventories monitored by ICE in US ports fell to a 5.75-month low of 1,884,345 bags. Additionally, net-short positions in London cocoa increased by 5,060 to 10,771, marking the largest short position in over three years. Meanwhile, cocoa exports from Ivory Coast, the largest cocoa producer, were reported at 48,753 MT from October 1-11, down from 100,264 MT in the same period last year.
Global cocoa demand has been weak, with Q2 European cocoa grindings down 7.2% year-on-year to 331,762 MT, and Q2 Asian grindings decreased by 16.3% to 176,644 MT. The International Cocoa Organization (ICCO) projected a global cocoa deficit of 494,000 MT for 2023/24, the largest in over 60 years, while anticipating a 142,000 MT surplus for 2024/25.
“`
