On September 11, 2023, cocoa prices experienced mixed movements, with September ICE NY cocoa (CCU26) closing down 0.23% at -$13 and September ICE London cocoa #7 (CAU26) gaining 0.02% at +$1. The pressures on prices were attributed to a stronger dollar and rising cocoa inventories, which reached a two-year high of 3,279,012 bags.
Concerns about global demand also impacted prices, as the European Cocoa Association reported a 4.6% decline in Q2 European cocoa grindings to 316,366 MT, the lowest for Q2 in six years. Conversely, Q2 North American cocoa grindings unexpectedly rose by 7.7% year-on-year to 109,659 MT, easing some fears of declining demand. Additionally, Asian cocoa grindings surged by 25% year-on-year to 224,646 MT, outperforming expectations.
The Ivory Coast reported that farmers shipped 2.09 million metric tons (MMT) of cocoa to ports, a 21% increase from the previous year, amidst weather concerns that could negatively impact future yields. Estimates indicate the upcoming 2026/27 cocoa crop could be 1.8 MMT, down 18% from the previous season’s 2.2 MMT.
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