May ICE NY cocoa prices fell by $0.15 (0.46%) today, with April London cocoa markets closed due to the Easter Monday holiday. Cocoa prices are being pressured by a decline in expected chocolate sales this Easter, which are projected to decrease by about 5% compared to last year, according to Bloomberg Intelligence.
Additionally, cocoa inventories at ICE reached a 1.5-year high of 2,375,262 bags as of last Thursday. In the Ivory Coast, cocoa shipments decreased by 0.7% to 1.43 million metric tons in the current marketing year, while Ghana cut payment rates for cocoa farmers by nearly 30%. The International Cocoa Organization also foresees a global surplus of 75,000 metric tons for the 2024/25 season, the first surplus in four years.
Consumption issues are underscored by a significant drop in sales volume from Barry Callebaut AG, which reported a 22% decline in its cocoa division for the last quarter. Meanwhile, the European Cocoa Association highlighted an 8.3% year-on-year decrease in Q4 European cocoa grindings, marking the lowest figure for that period in 12 years.
