**Cocoa Prices Surge Amid Supply Concerns and Global Factors**
Cocoa prices are experiencing significant gains today, with May ICE NY cocoa up by 4.02% to $116 and May ICE London cocoa #7 rising by 2.92% to $60. This increase comes as rising shipping costs linked to the war in Iran escalate global shipping rates and insurance costs, raising concerns about cocoa export supplies.
In the current marketing year from October 2025 to March 2026, cocoa shipments from Ivory Coast have dipped to 1.34 million metric tons (MMT), a decline of 3.6% from 1.39 MMT during the same period last year. The International Cocoa Organization (ICCO) has projected an 8.4% increase in global cocoa production for 2024/25 to 4.7 MMT and indicated a surplus of 75,000 MT, marking the first surplus in four years. Concurrently, cocoa inventory levels in the ICE have reached a 5.75-month high of 2,155,913 bags due to decreased buyer interest amid high official prices in key producing countries.
