Cocoa prices increased on Friday, with May ICE NY cocoa closing at $84 per ton higher (+2.66%) and May ICE London cocoa up $56 (+2.37%). This rise was driven by short covering in futures spurred by a weak dollar, alongside excessive short positions from funds in London cocoa reaching 33,827, a level not seen in over 8 years.
In the current marketing year, the Ivory Coast has shipped 1.45 million metric tons (MMT) of cocoa, a 0.7% increase from the previous year. The country and Ghana produce over half of the world’s cocoa, but the sector is facing downward pressures due to signs of weak chocolate demand, with a projected 5% decline in chocolate candy sales this Easter. Meanwhile, ICE cocoa inventories have surged to a 19.5-month high of 2,540,983 bags.
