Cocoa prices have sharply declined on December 5, 2023, with December ICE NY cocoa (CCZ26) down 3.99% to $6,315 per metric ton and December ICE London cocoa #7 (CAZ26) falling 4.36% to $5,097 per metric ton. This drop follows an announcement from Barry Callebaut AG indicating a well-supplied cocoa market, reducing pricing fears from the previous year’s El Niño impacts that led to record high prices.
Recent statistics from the Ivory Coast reveal that farmers have shipped 2.14 million metric tons (MMT) of cocoa for the current marketing year, a 19% increase from last year. Additionally, Cocoa inventories on the Intercontinental Exchange (ICE) have reached a two-year high of 3,411,776 bags, further pressuring prices.
Ghana, the world’s second-largest cocoa producer, is facing a projected 13% drop in its 2026/27 cocoa crop, expected to reach 650,000 MT, amid concerns related to disease and adverse weather. The ongoing El Niño is anticipated to influence overall cocoa production, signaling potential supply challenges despite current adequate inventories.
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