Cocoa prices saw slight increases on Wednesday, with March ICE NY cocoa closing up 0.03% and March ICE London cocoa up 0.25%. The moves came after prices peaked at two-week highs on Monday, driven by a 27% drop in cocoa deliveries to ports in Ivory Coast, which logged only 59,708 metric tons for the week ending December 28.
Current conditions reflect a tightening supply outlook, with the International Cocoa Organization (ICCO) reducing its global cocoa surplus estimate for 2024/25 from 142,000 MT to 49,000 MT. Additionally, ICE-monitored cocoa inventories in U.S. ports recently fell to a nine-and-a-half-month low of 1,626,105 bags.
The market is also affected by declining grindings, with a reported 17% year-on-year drop in Q3 cocoa grindings in Asia and a 4.8% decline in Europe. Meanwhile, Nigeria anticipates an 11% fall in cocoa production for the 2025/26 crop year.
