“`html
On Wednesday, cocoa prices fell significantly, with December ICE NY cocoa (CCZ25) closing down 3.09% and December ICE London cocoa #7 (CAZ25) down 3.97%. This decline was driven by expectations of a robust cocoa crop in West Africa, particularly from Ivory Coast and Ghana, where favorable weather has positively impacted cocoa pod development.
Mondelez reported that the latest cocoa pod count in West Africa is 7% above the five-year average, contributing to optimistic projections for the upcoming harvest. However, a slowdown in cocoa exports from the Ivory Coast—down 16% year-on-year—and current low ICE cocoa inventories, which reached a 7.25-month low of 1,810,657 bags, are creating mixed signals for market participants.
In terms of demand, North American chocolate sales volume decreased by more than 21% in the 13 weeks ending September 7, reflecting potential challenges ahead for cocoa prices amidst weak global demand. The International Cocoa Organization also cited a significant global cocoa deficit of 494,000 MT for the 2023/24 season, the largest in over 60 years.
“`
