Cocoa Prices Plummet to Lowest Level Since February Amid Global Supply Abundance
Cocoa prices in global markets have fallen below $6,500 per ton, marking their lowest level since February 2024, driven by expectations of a continued strong global supply in the upcoming period.
The main harvesting season has begun in Côte d’Ivoire, the world’s largest cocoa producer, with early crop quantities reaching markets to capitalize on the high local prices set by the government. In a similar vein, Ghana, the second-largest producer, has raised purchasing prices for the crop from farmers for the second time this season, likely contributing to a supply boost and alleviating pressure on the market.
On the international front, economic reports predict that strong crops in South America will support the global stock after years of decline in West Africa. Estimates suggest that Ecuador may increase its productivity by about 5% to reach 580,000 tons, positioning it as the second-largest global producer, surpassing Ghana.
Conversely, demand for chocolate is facing pressures due to rising prices and customs tariffs, reflected in markets for over seven weeks, as prices continue losing momentum amid concerns over declining global consumption.
