**Cocoa Prices Decline Amid Demand Concerns**
On Friday, July ICE NY cocoa (CCN26) closed down -$203 (-5.12%), while July ICE London cocoa #7 (CAN26) fell -$113 (-3.75%), marking significant losses and reaching a two-week low for NY cocoa and a 1.5-week low for London cocoa. Concerns over chocolate demand were exacerbated by Barry Callebaut’s revised sales volume guidance, suggesting a slower recovery than previously expected. Additionally, cocoa inventories on the ICE rose to a 1.75-year high of 2,929,074 bags.
Pressure on cocoa prices is compounded by reports indicating increased shipments from the Ivory Coast, which delivered 1.66 million metric tons in the current marketing year, reflecting a 1.8% rise from the previous year. Meanwhile, the U.S. National Oceanic and Atmospheric Administration (NOAA) forecasts an 82% chance that an El Niño weather pattern could affect West African cocoa production, potentially limiting future supplies, while Nigeria’s cocoa exports in April fell 20% year-on-year. Despite weakening demand in North America and Europe, Asian cocoa grindings rose by 5.2% year-on-year, providing some support in the market.
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