On September 26, cocoa prices surged, with September ICE NY cocoa closing at $8,769 per metric ton, up 2.68%, and July ICE London cocoa closing at $6,088 per metric ton, up 0.96%. This rise is attributed to concerns over tighter cocoa supplies from the Ivory Coast amid heavy rains disrupting the ongoing mid-crop harvest.
According to recent government data, the Ivory Coast exported 1.679 million metric tons of cocoa from October to June, a 6.9% increase from last year but significantly lower than the 35% spike recorded in December. The quality of the mid-crop harvest has also raised concerns, with reports indicating that 5-6% of truckloads are now rejected due to poor quality, compared to just 1% during the main crop.
Meanwhile, ongoing demand issues have affected cocoa grindings, with Q1 North American, European, and Asian cocoa grindings seeing declines of 2.5%, 3.7%, and 3.4% year-over-year, respectively. The International Cocoa Organization has revised the 2023/24 global cocoa deficit to 494,000 metric tons, the largest in over 60 years.
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