Global Cocoa Prices Fall to Lowest Level in 20 Months
On global exchanges, cocoa prices have dropped to their lowest levels since the beginning of 2024. The main reasons for the sharp decline are the increase in supply and optimistic forecasts regarding future harvests.
This is reported by AgroReview
Reasons for the Decline in Cocoa Prices
On the London market, cocoa futures have reached a 20-month low. This decline is attributed to the recovery of global supply following a period of poor harvests. In December of last year, prices peaked due to a raw material shortage; however, the situation is now gradually stabilizing. Investors and hedge funds have become more cautious, assessing market prospects carefully due to expected production increases and reduced demand amid high prices.
Producers from Côte d’Ivoire and Ghana have raised the ex-farm prices for raw materials, encouraging farmers to sell their harvests more quickly and invest more frequently in agricultural development. This also contributes to an increase in the overall supply of cocoa in global markets.
Impact on Consumers and Markets
The current decline in cocoa prices may be good news for consumers who have recently faced rising chocolate prices. At the same time, futures remain at historically high levels, and chocolate manufacturers are working with expensive inventories. This means that any reduction in retail chocolate prices in supermarkets will occur with a delay.
On Monday, cocoa futures in London fell another 1.5%, but later partially recovered. In the New York market, after a 2.7% drop, prices remained nearly unchanged.
With the start of the new season, market participants are closely monitoring weather conditions in leading producing countries. According to a Bloomberg survey conducted last month, in the 2025-2026 season, global cocoa production could exceed consumption by 186,000 tons. This surplus will be more than double that of the previous year.
“Unlike last year, weather conditions in West Africa appear to be stabilizing, and market participants are eagerly awaiting the first arrivals of the new season.”
The industry anticipates the arrival of the first batches of cocoa beans at ports for export, which could further impact market dynamics in the coming months.