**Cocoa Prices Surge to 1.75-Month Highs Amid Demand Recovery**
On April 11, 2023, cocoa prices soared with May ICE NY cocoa (CCK26) closing up 8.51% at +279, and May ICE London cocoa #7 (CAK26) rising 6.57% at +161. This uptick followed reports of an 8.7% year-over-year increase in Malaysia’s Q1 cocoa grindings, totaling 91,946 MT. Furthermore, the U.S. dollar index fell to a 6-week low, contributing to higher cocoa values.
In contrast, the supply outlook remains mixed. The Ivory Coast reported a 0.7% increase in cocoa shipments, reaching 1.46 MMT for the current marketing year. However, rising inventories in ICE reached a 19.5-month high of 2,610,453 bags, alongside bearish forecasts indicating a potential cocoa surplus, with the International Cocoa Organization estimating a 75,000 MT surplus for 2024/25.
