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On Friday, December ICE NY cocoa closed down by 291 points (-4.49%) at a 19-month low, while December ICE London cocoa closed down by 225 points (-4.99%), reaching a 20-month low. The declines followed actions by the governments of the Ivory Coast and Ghana to increase payments to cocoa farmers, potentially boosting cocoa supplies.
Cocoa deliveries in Ghana surged to 50,440 metric tons in the four weeks ending September 4, compared to about 11,000 metric tons in the same period in 2024. Additionally, forecasts suggest improved cocoa production in the Ivory Coast, with a projected mid-crop of 400,000 metric tons, down 9% from the previous year, leading to bearish price trends.
Weak global cocoa demand is reflected in significant declines in grindings: European grindings fell by 7.2% year-over-year to 331,762 metric tons, while Asian grindings dropped 16.3% to 176,644 metric tons, marking the smallest Q2 in eight years. The International Cocoa Organization has revised the 2023/24 global cocoa deficit to 494,000 metric tons, noting the largest deficit in over 60 years.
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