**Cocoa Prices Mixed Amid Supply Concerns and Currency Fluctuations**
On Tuesday, May ICE NY cocoa (CCK26) closed down by $6 (-0.20%), while May ICE London cocoa #7 (CAK26) rose by $22 (+1.04%). These fluctuations were influenced by a strong dollar index reaching a 3.25-month high, which negatively impacted NY cocoa prices, while a declining British pound boosted London cocoa.
Recent reports from the International Cocoa Organization (ICCO) increased the 2024/25 global cocoa surplus estimate to 75,000 metric tons, a significant rise from the previous forecast of 49,000 metric tons, marking the first surplus in four years. Global cocoa production is expected to rise by 8.4% year-on-year to 4.7 million metric tons. Additionally, ICE cocoa inventories have climbed to a six-and-a-half-month high of 2,200,058 bags, driven by declining demand and higher shipping costs affecting cocoa exports.
