**Cocoa Prices Decline Amid Supply Concerns and Dollar Strength**
On March 20, cocoa prices fell significantly, with March ICE NY cocoa (CCH26) down by $184 (-2.95%) and March ICE London cocoa #7 (CAH26) down by $132 (-2.94%). This decline follows Monday’s gains, influenced by a stronger dollar index reaching a one-week high and subsequent long liquidation pressures in cocoa futures.
The drop in price comes despite key supply issues in the Ivory Coast, the world’s largest cocoa producer. Farmers delivered 59,708 metric tons (MT) of cocoa to ports in the week ending December 28, marking a 27% drop compared to the same week last year. Cumulatively, cocoa deliveries for the new marketing year total 1.029 million MT, down 2% from 1.050 million MT during the previous year’s period. Additionally, cocoa production estimates have been revised downward by the International Cocoa Organization (ICCO), expecting a global deficit of 494,000 MT for 2023/24, the largest in over 60 years.
