On Tuesday, May ICE NY cocoa (CCK26) closed up +158 (+4.80%), while May ICE London cocoa #7 (CAK26) rose +121 (+5.12%). The rally was fueled by a report from Reuters that local grinders purchased over 400,000 metric tons of Ivory Coast cocoa export contracts as demand surged following recent price cuts.
Furthermore, cumulative data from the Ivory Coast indicated that farmers shipped 1.35 million metric tons of cocoa during the current marketing year, a decline of 3.6% from the previous year. This decline in shipments, coupled with increased shipping costs due to the closure of the Strait of Hormuz, has put upward pressure on cocoa prices.
Despite the recent price increases, demand concerns persist. Notably, Barry Callebaut AG reported a 22% decline in cocoa sales volume for the quarter ending November 30, and European cocoa grindings fell by 8.3% year-over-year in Q4, marking the lowest for that quarter in 12 years.
