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On Wednesday, December ICE NY cocoa closed down 90 points (-1.53%) while December ICE London cocoa #7 fell 115 points (-2.73%) amid weak global cocoa demand. Malaysia’s Q3 cocoa grindings plunged 35% year-on-year to 60,780 MT, with the rest of the Q3 global cocoa grindings data expected soon, indicating continued demand constraints.
The governments of Ivory Coast and Ghana have recently increased payments to cocoa farmers, aiming to boost sales and supplies. Despite some support from declining cocoa production and quality issues, cocoa prices remain under pressure due to fears that high market prices and tariffs may negatively impact chocolate demand, with North American chocolate sales down over 21% year-on-year for the 13 weeks ending September 7.
Current cocoa deliveries in Ghana rose significantly, reaching 50,440 MT in early September compared to 11,000 MT in the same period last year. Meanwhile, a report from the International Cocoa Organization indicated a projected global cocoa deficit of 494,000 MT for the 2023/24 season, the largest in over 60 years, while the 2024/25 season may see a surplus of 142,000 MT.
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