Cocoa prices fell on April 14, with July ICE NY cocoa down 0.78% and May ICE London cocoa down 0.51%, due to weak global demand. Circana reported that North American chocolate candy sales dropped 1.3% in the 13 weeks ending March 22, and Bloomberg noted a 5% decline during the recent Easter holiday.
ICE cocoa inventories reached a 20-month high of 2,632,357 bags, while Q1 cocoa grindings in North America decreased by 3.8% year-over-year to 106,087 MT. European grindings saw a more significant drop of 7.8% to 325,895 MT, the lowest for the first quarter in 17 years. In contrast, Asian cocoa grindings increased by 5.2% to 223,503 MT.
Concerns over potential disruptions in cocoa supply due to tensions in the Strait of Hormuz support cocoa prices. Furthermore, cocoa exports from Nigeria fell 4.6% year-over-year to 40,110 MT, and recent insufficient rainfall in West Africa raises drought concerns, impacting future cocoa production forecasts.
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