Cocoa prices saw significant declines on Thursday, with May ICE New York cocoa (CCK26) down 2.99% to close at -100 and May ICE London cocoa #7 (CAK26) down 0.45% to close at -11. This downturn is attributed to fears of weak chocolate demand, as early estimates suggest a decline in chocolate candy sales by approximately 5% this Easter compared to last year, according to Bloomberg Intelligence.
Supply concerns also loom large as ICE cocoa inventories rose to a 1.5-year high of 2,365,262 bags. In the Ivory Coast and Ghana, over half of the regions are experiencing drought conditions, exacerbated by insufficient rainfall, contributing to fears of lower crop yields. Consequently, Ghana announced a nearly 30% cut in the price it pays cocoa farmers, while the Ivory Coast is set to reduce payments by 57% for the mid-crop harvest.
