On Thursday, September ICE NY cocoa prices closed down $316 (-3.74%), while September ICE London cocoa #7 dropped $122 (-2.23%). The decline in cocoa prices was attributed to weakening chocolate demand, highlighted by Lindt & Spruengli AG lowering its margin guidance due to a decline in first-half chocolate sales.
Data from the Ivory Coast revealed that cocoa exports reached 1.74 million metric tons, a 6.1% increase from last year, but a slowdown in growth compared to previous months. Meanwhile, cocoa grindings in Q2 saw a significant drop, with European grindings falling 7.2% year-over-year to 331,762 metric tons, and Asian grindings down 16.3% to 176,644 metric tons, marking the smallest Q2 amount in eight years. Additionally, US port cocoa inventories are at a 10.5-month high of 2,368,141 bags.
The International Cocoa Organization (ICCO) revised its global cocoa deficit for 2023/24 to 494,000 metric tons, the largest in over 60 years, projecting a production decline of 13.1% year-over-year to 4.38 million metric tons. However, a potential surplus is expected in 2024/25 with a forecasted production rise of 7.8% to 4.84 million metric tons.
