May ICE NY cocoa closed down $34 (-1.06%) and May ICE London cocoa #7 down $25 (-1.05%) on Thursday, experiencing losses amid consolidating prices. Cocoa supplies from the Ivory Coast have increased, with farmers shipping 1.45 million metric tons (MMT) this marketing year, up 0.7% from the previous year. ICE cocoa inventories also rose to a 19.25-month high of 2,505,563 bags, indicating ample supply in the market.
Demand concerns have been significant, with a projected decline of approximately 5% in chocolate candy sales during the Easter holiday. Recent reports indicated a 22% drop in sales volume for Barry Callebaut AG’s cocoa division, and European cocoa grindings fell by 8.3% year-over-year for Q4 2022, the lowest in 12 years. Additionally, increased cocoa exports from Nigeria, which rose 17% year-on-year in December, further exacerbate the downtrend in cocoa prices.
