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On Friday, December ICE NY cocoa (CCZ25) closed down by 172 points (-2.78%) and December ICE London cocoa #7 (CAZ25) fell by 112 points (-2.53%), marking a three-day decline and reaching one-week lows. This drop follows a peak earlier in the week due to strong expectations of a bumper cocoa crop in West Africa.
Recent reports indicate that Ivorian cocoa farmers have noted robust tree health, with a cocoa pod count in West Africa 7% above the five-year average. The Ivory Coast’s main crop harvest has just started, and exports from the country have decreased by 16% year-on-year. The International Cocoa Organization reported a global cocoa deficit of 494,000 MT for the 2023/24 period, the highest in over 60 years.
In the market, U.S. cocoa inventories have dropped to a 7.5-month low of 1,793,757 bags. Meanwhile, a report from Circana indicates that North American chocolate candy sales volume has declined by more than 21% in the 13 weeks leading up to September 7, reflecting worries over high cocoa prices affecting demand.
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