On September 18, 2023, cocoa prices showed significant declines, with September ICE NY cocoa (CCU25) down 192 points (-2.50%) and September ICE London cocoa #7 (CAU25) down 187 points (-3.36%). This drop marks a five-week low for NY cocoa and a two-week low for London cocoa, driven by expectations of beneficial rains in the Ivory Coast, which are anticipated to improve cocoa crop conditions.
Additionally, chocolate demand weakness is impacting prices, as evidenced by Lindt & Spruengli AG’s lowered margin guidance due to a decline in first-half sales and Barry Callebaut AG’s reduced sales volume outlook for the second time in three months. Moreover, the Ivory Coast’s cocoa exports have slowed, with local farmers shipping 1.78 million metric tons this marketing year, a modest 6.0% increase compared to last year, which is a significant decrease from the larger 35% hike seen in December.
