**Cocoa Prices Decline Amid Weak Demand**
On April 14, 2023, cocoa prices fell significantly as May ICE NY cocoa closed down 5.38% and May ICE London cocoa down 4.17%. This decline follows reports of decreased cocoa grindings, with North American Q1 cocoa grindings dropping 3.8% year-over-year to 106,087 metric tons, and a 7.8% decline in European grindings, the lowest in 17 years at 325,895 metric tons.
In contrast, Q1 Asian cocoa grindings rose unexpectedly by 5.2% year-over-year to 223,503 metric tons. Additionally, the reopening of the Strait of Hormuz is expected to ease supply concerns. However, bearish factors persist, including increased ICE cocoa inventories, which reached a 19.75-month high of 2,624,492 bags, and weak chocolate sales in North America, which declined by 1.3% during the 13 weeks ending March 22.
