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On September 1, cocoa prices saw significant declines, with September ICE NY cocoa (CCU25) dropping by 3.22% to close at -$274 and September ICE London cocoa #7 (CAU25) falling by 2.92% to close at -$165. These declines were attributed to easing supply concerns amid speculation that cocoa may be exempt from President Trump’s tariffs.
Earlier this week, cocoa prices had rallied to one-month highs due to concerns over slowing cocoa exports from Ivory Coast, which reported shipments of 1.75 MMT from October 1 to July 27, up by 6.1% year-over-year but significantly lower than the 35% increase recorded in December. Additionally, cocoa inventories in US ports hit a 10.5-month high of 2,368,141 bags.
Global cocoa demand is facing headwinds, highlighted by a -7.2% year-over-year decline in Q2 European cocoa grindings and a -16.3% drop in Q2 Asian cocoa grindings, with North America also reporting a -2.8% decline. The International Cocoa Organization (ICCO) has projected a 2023/24 global cocoa deficit of 494,000 MT, marking the largest deficit in over 60 years.
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