**Cocoa Prices Drop Amid Supply Surge and Demand Concerns**
As of today, May ICE NY cocoa prices are down 0.13%, reaching 2.5-week lows, while May ICE London cocoa prices are down 0.09%. These declines come amid a robust forecast for the West African cocoa crop, particularly in Ivory Coast and Ghana, where consistent rainfall has improved pod development.
Currently, ICE cocoa inventories have hit a 7.75-month high of 2,349,227 bags. Both Ghana and Ivory Coast have announced significant cuts to cocoa farmer payments—nearly 30% in Ghana for the 2025/26 season and 57% in Ivory Coast for the mid-crop harvest starting this month. These two countries account for over half of the world’s cocoa production.
Consumer demand for chocolate has weakened, contributing to falling cocoa prices. Barry Callebaut AG reported a 22% decline in sales volume in its cocoa division for Q4, and the European Cocoa Association noted a staggering 8.3% year-on-year decline in cocoa grindings for the same quarter, the lowest in 12 years.
