**Cocoa Market Update: Prices and Projections**
As of today, May ICE NY cocoa is up 46 points (+0.58%) and May ICE London cocoa #7 has risen 83 points (+1.34%). This increase comes as cocoa prices stabilize above recent lows, supported by a drop in the British pound which enhances sterling-priced cocoa values.
The International Cocoa Organization (ICCO) has forecasted a global cocoa surplus of 142,000 metric tons for the 2024/25 season, reversing a trend of deficits. This is significant as global cocoa production is projected to rise by 7.8% year-on-year to 4.84 million metric tons. Meanwhile, cocoa inventories in U.S. ports have increased to a 4-3/4 month high of 1,787,442 bags, rebounding from a 21-year low earlier this year. However, a decline in the Ivory Coast’s mid-crop estimate and rising prices impacting consumer demand pose challenges for the market, particularly as major chocolate producers like Hershey and Mondelez report lower consumption and adapt their recipes due to high cocoa costs.
