Cocoa Futures Hit Over 1-1/2-Year Low

Cocoa futures extended their slide to below $6,200 per tonne, a new low since February 2024, pressured by ongoing expectations of ample global supply.

Dealers noted that the main crop harvest in top grower Ivory Coast was underway, with early arrivals set to be boosted by some cocoa set aside to benefit from a rise in the farmgate price.

Ghana increased the amount it pays farmers for cocoa for the second time this season after top producer Ivory Coast raised its prices, a step likely to boost warehouse arrivals and ease global supply constraints.

Furthermore, stronger South American crops are expected to support a recovery in global stocks following consecutive poor West African harvests.

Notably, Ecuador's output may grow 5% to 580,000 tons, possibly overtaking Ghana as the second-largest producer.

Cocoa prices have also been under pressure over the past seven weeks amid fears that high cocoa prices and tariffs could dampen chocolate demand.