**Cocoa Prices Decline Amid Increased Supply and Weak Chocolate Demand**
On Wednesday, May ICE NY cocoa (CCK26) closed down $0.80 (-2.25%) at $34.70 per metric ton, while May ICE London cocoa #7 (CAK26) fell $0.56 (-2.14%) to $25.70 per metric ton. Cocoa prices have dropped from 1.75-month highs, attributed to hedge selling from producers as concerns over demand persist. Notably, forward cocoa sales from Ivory Coast for the 2026/27 season have surged to 800,000 metric tons so far this month, compared to 350,000 metric tons sold in March.
Cocoa grindings in Malaysia reported an 8.7% year-over-year increase to 91,946 metric tons for Q1, suggesting a potential demand recovery. However, the overall market remains challenged as global cocoa supplies from the Ivory Coast have increased, with farmers shipping 1.46 million metric tons this year, a 0.7% rise from last year. Additionally, ICE cocoa inventories climbed to a 19.75-month high of over 2.6 million bags, further pressuring prices as weak chocolate demand and significant cuts in farmer payments in major producing countries such as Ghana and the Ivory Coast loom.
