May ICE NY cocoa futures closed at $3,219 per tonne on Tuesday, down $78 (-2.37%), while May ICE London cocoa #7 contracts settled at $2,418 per tonne, declining by $51 (-2.06%). This drop was influenced by a stronger dollar and increased inventories, with ICE cocoa stocks hitting a 20-month high of 2,632,357 bags.
Recent reports reveal that North American Q1 cocoa grindings fell by 3.8% year-on-year to 106,087 MT, while European grindings decreased by 7.8% to 325,895 MT—marking the lowest Q1 figures in 17 years. In contrast, Asian cocoa grindings grew by 5.2% to 223,503 MT. Additionally, chocolate sales in North America decreased by 1.3% in the 13 weeks ending March 22, and Easter holiday sales saw a roughly 5% drop.
Cocoa supplies remain strong from the Ivory Coast, which shipped 1.48 million metric tonnes (MMT) so far this marketing year, unchanged from last year. Drought concerns persist in Ghana and the Ivory Coast despite recent rainfall, as over half of the Ivory Coast and two-thirds of Ghana face drought conditions. Ghana has reduced farmer prices by nearly 30%, while the Ivory Coast will cut payments by 57% for the mid-crop harvest.
