Cocoa Futures Hover Near 1-Month High

Cocoa prices traded around $5,800 per tonne, close to their highest in nearly a month, influenced by crop forecasts and ongoing climate risks. Supply concerns have intensified in the key producing region of West Africa after Ghana's cocoa regulator COCOBOD projected a decline of at least 16% in 2026/27 cocoa production due to unfavorable weather, disease, ageing plantations, illegal mining, and the crop's natural yield cycle. Expectations of a more than 10% drop in Ivory Coast's output next season, along with the risk of excessive rainfall boosting disease pressure, further supported prices. Additionally, concerns mounted that Ecuador, Peru and Southeast Asia could together produce 100,000 tons less cocoa.

Cocoa prices traded above $6,000 per tonne, their highest in more than three weeks, supported by renewed concerns about supply from West Africa. Ghana's cocoa regulator COCOBOD estimated cocoa production will decline by at least 16% in the 2026/27 season, citing unfavorable weather, the cocoa tree's natural alternating yield cycle, disease, ageing plantations and illegal gold mining. Supply concerns were reinforced by expectations of a more than 10% decline in Ivory Coast's production next season. While crop prospects remain generally favorable, farmers said more sunshine and timely fertilizer and pesticide applications are needed, warning that excessive rainfall later in the season could increase disease risks and further tighten global cocoa supplies.

Cocoa increased 5.34% to 5384.74 USD/T