On September 8, 2023, cocoa prices fell, with September ICE NY cocoa (CCU25) down by 1.37% to close at $8,497 and September ICE London cocoa #7 (CAU25) down 0.38% to $5,460. This decline followed an early advance and was attributed to concerns over weak chocolate demand. New York cocoa initially peaked at a 5-week high, bolstered by falling ICE-monitored inventories, which reached a 1.75-month low of 2,270,713 bags.
Key data revealed that the Ivory Coast exported 1.76 million metric tons (MMT) from October 1 to August 3, a 6% increase year-over-year, but this was down from a substantial 35% rise noted earlier in the year. The European Cocoa Association reported a significant decline in Q2 cocoa grindings, with European figures down 7.2% to 331,762 MT, and Asian figures down 16.3% to 176,644 MT, marking the lowest Q2 for Asia in 8 years.
Furthermore, the International Cocoa Organization revised its 2023/24 cocoa deficit to 494,000 MT, the largest in over 60 years. However, it projected a production increase of 7.8% year-over-year to 4.84 MMT for 2024/25, signaling a potential surplus after years of deficits.
