July ICE NY cocoa closed on Tuesday at $4,591 per ton, down 2.59%, while July ICE London cocoa fell to $3,421, down 1.52%. The dip follows a recent rally and is attributed to a stronger U.S. dollar and long liquidation in cocoa futures. Concerns regarding an El Niño weather pattern, projected by NOAA to have a 61% chance of emerging between May and July, could contribute to reduced cocoa production in West Africa.
In Q1 2023, North American cocoa grindings dropped 3.8% year-over-year to 106,087 metric tons, while European grindings fell 7.8% to 325,895 metric tons, marking the lowest first-quarter figures in 17 years. Conversely, Asian cocoa grindings increased by 5.2% to 223,503 metric tons. Shipping data from the Ivory Coast shows cocoa exports at 1.57 million metric tons, a 0.6% increase from the same time last year. However, Nigerian cocoa exports plummeted 35% year-over-year to 18,052 metric tons.
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