Cocoa prices increased on Wednesday, with December ICE NY cocoa rising by 0.64% to close at +38 and December ICE London cocoa up 0.47% at +20. This uptick was driven by Ghana’s cocoa industry regulator’s proposal to raise farmers’ pay by 6% for the 2026/27 season, prompted by concerns over potential higher prices amidst supply issues.
In related news, Ghana’s Cocoa Board projected a decrease in the 2026/27 crop to 650,000 metric tons, down 13% from the previous year. Conversely, the Ivory Coast harvested 2.06 million metric tons this season, marking a 30% increase from last year, as total shipments from the Ivory Coast rose 19% year-over-year to 2.14 million metric tons. Furthermore, ICE cocoa inventories reached a two-year high of 3,436,742 bags.
Market dynamics have been influenced by weather conditions, as the El Niño weather pattern is expected to impact yields negatively in the upcoming season. Current cocoa supplies appear adequate with notable increases in exports from Nigeria, which saw a rise of 18% year-over-year in July, totaling 16,052 metric tons.
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