**Cocoa Prices Surge Amid Currency Fluctuations**
On Wednesday, May ICE NY cocoa rose by 5.55%, closing up 168 points, while May ICE London cocoa increased by 2.62%, up 61 points. This spike in cocoa prices was triggered by a decline in the dollar index, reaching a four-week low, which prompted short covering in cocoa futures. However, gains in London were tempered as the British pound hit a five-week high.
Current cocoa supplies from the Ivory Coast show a slight increase, with 1.45 million metric tons shipped since the marketing year began, reflecting a 0.7% rise from last year. Despite the price surge, demand concerns persist; early estimates predict a 5% drop in chocolate candy sales this Easter. Additionally, ICE cocoa inventories reached a 19-month high of 2.48 million bags, further contributing to bearish market pressures.
