Cocoa prices have sharply declined as May ICE NY cocoa (CCK26) fell by 4.35% to $3,277 and May ICE London cocoa #7 (CAK26) dropped 4.15% to $2,373. This drop comes amidst optimism of increased crop yields due to forecasted rainfall in West Africa, expected to continue into next week, aiding cocoa crop flowering.
Recent reports indicate that over 400,000 metric tons of Ivory Coast cocoa export contracts were purchased within 10 days of resuming mid-year crop purchases. However, Ghana and Ivory Coast have reduced cocoa farmer pay by nearly 30% and 57%, respectively, impacting prices. Meanwhile, shipments from Ivory Coast are down 3.6% year-over-year, totaling 1.35 million metric tons. ICE cocoa inventories have risen to a 7-month high of 2,228,827 bags, exacerbating demand concerns amid a 22% decline in sales volume for chocolate maker Barry Callebaut AG.
