**Cocoa Prices Decline Amid Improved Growing Conditions**
On Friday, March ICE NY cocoa (CCH26) closed down 3.20% at -194, and March ICE London cocoa #7 (CAH26) dropped 2.95% at -129, marking a sell-off to one-week lows. The decline is attributed to favorable weather conditions in West Africa, where Tropical General Investments Group reported a boosted February-March cocoa harvest in the Ivory Coast and Ghana, with pod counts 7% above the five-year average.
Cocoa arrivals at ports in the Ivory Coast have slowed, with farmers delivering 59,708 metric tons (MT) during the week ending December 28, down 27% compared to the same week last year. Cumulative shipments for the new marketing year (October 1 to December 28) total 1.029 million MT, a decrease of 2.0% from 1.050 million MT during the same period last year.
In related economic outlooks, the International Cocoa Organization (ICCO) cut its global 2024/25 cocoa surplus estimate to 49,000 MT and production estimate to 4.69 million MT, following news of a projected deterioration in global cocoa demand, with notable declines in Q3 cocoa grindings across Asian and European markets.
