**Cocoa Prices Decline Amid Demand Concerns**
On April 13, 2023, cocoa prices fell significantly, with May ICE NY cocoa closing down $110 (-3.16%) and May ICE London cocoa down $60 (-2.35%). The European Cocoa Association reported a 7.8% year-over-year decline in Q1 European cocoa grindings, totaling 325,895 metric tons, marking the lowest Q1 figure in 17 years. In contrast, Q1 Asian cocoa grindings rose unexpectedly by 5.2% year-over-year to 223,503 metric tons, surpassing expectations of a decline.
Current market conditions show that Nigerian cocoa exports rose 17% year-over-year, while Ivory Coast cocoa shipments increased by 0.7%, totaling 1.46 million metric tons for the current marketing year. Additionally, cocoa inventories on ICE reached a 19.75-month high of 2,624,492 bags. Drought conditions continue to affect cocoa-producing regions, with more than half of the Ivory Coast and two-thirds of Ghana experiencing drought, raising concerns about future supply despite strong short positions by funds in New York cocoa.
