Cocoa prices declined significantly on Thursday, with September ICE NY cocoa closing down 8.86% and ICE London cocoa down 8.82%, marking 1.5-week lows. This drop followed a report by the European Cocoa Association indicating Q2 European cocoa grindings fell 4.6% to 316,366 metric tons, the lowest level for Q2 in six years, exceeding the expected 1.5% decline. In contrast, Q2 Asian cocoa grindings rose 25% year-on-year to 224,646 metric tons, far surpassing anticipations of a 9% increase.
Significant cocoa supplies are pressuring prices, as Nigerian cocoa exports in June increased by 30% year-on-year to 18,922 metric tons. Current ICE cocoa inventories have reached a two-year high of 3,204,512 bags. Additionally, early assessments of the upcoming 2026/27 cocoa crop in Côte d’Ivoire suggest below-average pod development, projecting a harvest of only 1.8 million metric tons, down 18% from the previous year’s estimate of 2.2 million metric tons.
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