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As of recent trading, December ICE NY cocoa (CCZ25) is up +79 (+1.07%), and December ICE London cocoa #7 (CAZ25) is up +5 (+0.10%). This increase follows a previous sharp decline of -3.52% on Thursday, influenced by a recent drop in the dollar index, which has generally supported commodity prices.
On Thursday, cocoa prices fell sharply after Mondelez International reported a cocoa pod count in West Africa that is 7% above the five-year average. In response to high cocoa prices, Lindt & Sprüngli AG lowered its margin guidance due to decreased chocolate sales, while Barry Callebaut AG is projecting a decline in full-year sales volume after reporting a -9.5% drop for the period of March to May, the largest quarterly decline in a decade. Additionally, inventories at US ports dropped to a 3.5-month low of 2,152,022 bags.
Looking ahead, the International Cocoa Organization (ICCO) has revised its 2023/24 global cocoa deficit to -494,000 MT, the largest in over 60 years, while forecasting a possible surplus of 142,000 MT for 2024/25.
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