Cocoa prices rose on Friday, with July ICE NY cocoa increasing by 0.76% and July ICE London cocoa up by 0.75%. The London cocoa market reached a 2.5-month high, buoyed by steady consumer demand despite high prices, as reported by top chocolate makers Hershey and Mondelez International.
The global cocoa surplus forecast for the 2026/27 season was cut from 267,000 MT to 149,000 MT due to concerns surrounding West African crop yields linked to an anticipated El Niño weather event. Additionally, cocoa inventories reached a 20-month high of 2,654,817 bags. In contrast, North American cocoa grindings fell by 3.8% year-on-year to 106,087 MT, while European grindings saw a decline of 7.8% to 325,895 MT, marking the lowest first quarter in 17 years.
Current cocoa supplies from the Ivory Coast remain stable, with farmers shipping 1.51 MMT, a 0.7% increase from the previous year. Meanwhile, Nigeria reported a 4.6% drop in exports in February, with projections indicating a potential 11% decrease in production for 2025/26. Drought conditions in the Ivory Coast and Ghana persist, with Ghana and the Ivory Coast recently announcing significant cuts in farmer pay for the upcoming season.
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