**Cocoa Market Update**
On June 7, 2026, July ICE NY cocoa prices fell by $77 (-2.01%) to $3,754, while July ICE London cocoa #7 dropped by $49 (-1.67%), reflecting concerns over growing inventories and an expected dry weather pattern in West Africa. Cocoa prices had recently peaked due to damage caused by heavy rains and winds reported by farmers in the Ivory Coast.
As of last Friday, ICE cocoa inventories reached a 1.75-year high of 2,929,074 bags, while speculative short positions in NY cocoa reached their highest level in over three years at 21,111 net short contracts. Japan’s Meteorological Agency confirmed the formation of an El Niño weather pattern, projecting possible adverse effects on cocoa production in West Africa, with the U.S. NOAA estimating a 67% chance of a “Super El Niño” this year.
Increased cocoa shipments from the Ivory Coast rose 3.0% year-on-year to 1.69 million metric tons, contrasting with projected declines in production for the upcoming season. Reports also indicate that North American cocoa grindings fell by 3.8% and European grindings declined by 7.8% year-on-year in Q1, further complicating market dynamics amid a backdrop of weak consumer demand and heightened supply pressures.
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