On Monday, May ICE NY cocoa (CCK26) closed up 3.52% at +112, while May ICE London cocoa #7 (CAK26) rose 3.34% to +80, driven by concerns over supply disruptions following Iran’s closure of the Strait of Hormuz.
Amid rising fertilizer, shipping, and insurance costs due to the blockade, the International Cocoa Organization projected a global cocoa surplus of 75,000 MT for the 2024/25 season. However, weak demand signals emerged as U.S. cocoa grindings declined 3.8% year-over-year to 106,087 MT, and European grindings fell 7.8% to 325,895 MT, the lowest in 17 years.
Additionally, cocoa supplies from the Ivory Coast remain ample, with shipments hitting 1.48 MMT, unchanged from last year. Concurrently, Ghana announced a nearly 30% cut in farmer payments, while Nigeria reported a 17% increase in cocoa exports year-over-year to 54,799 MT, indicating potential pressures on cocoa prices.
