March ICE NY cocoa (CCH26) rose by $9 (+0.15%) and March ICE London cocoa #7 (CAH26) climbed by $6 (+0.14%) today. Cocoa prices are seeing a slight increase following a decline in deliveries from farmers in the Ivory Coast, the world’s largest cocoa producer. For the week ending December 28, cocoa arrivals at ports totaled 59,708 MT, a drop of 27% from the previous year. Cumulative shipments this marketing year stand at 1.029 MMT, down 2.0% from 1.050 MMT year-over-year.
Market analysts are eyeing the potential influx of $2 billion into NY cocoa futures due to the inclusion of cocoa in the Bloomberg Commodity Index starting January. However, concerns remain about weak global demand, with Q3 grindings in Asia falling 17% year-over-year to 183,413 MT, marking the lowest in nine years.
Additionally, the International Cocoa Organization (ICCO) has revised its global 2024/25 cocoa surplus estimate down to 49,000 MT, indicating tightening supply amidst a projected decrease in global cocoa production to 4.69 MMT, down from previous estimates.
