On March 9, 2024, cocoa prices saw an increase, with March ICE NY cocoa up $19 (+0.37%) and December ICE London cocoa up $12 (+0.33%). This rebound followed early losses attributed to the European Parliament’s recent approval for a one-year delay on the deforestation law (EUDR), which affects cocoa imports from deforestation-impacted regions.
Significantly, cocoa arrivals to ports in the Ivory Coast decreased, with shipments reaching 618,899 metric tons (MT) from October 1 to November 23, down 3.7% from 642,500 MT during the same period last year. Meanwhile, ICE-monitored cocoa inventories at U.S. ports hit an 8.25-month low of 1,710,455 bags, adding support to cocoa prices.
Despite expectations of a bumper cocoa crop in West Africa, chocolate sales have been disappointing as reported by Hershey, with Halloween chocolate sales down more than 21% in the 13 weeks ending September 7, 2023. The International Cocoa Organization also reported a projected global cocoa deficit of 494,000 MT for the 2023/24 season, marking the sector’s largest deficit in over 60 years.
