Cocoa prices fall more than 10% in a week

Global cocoa prices fell by more than 10% during September 15–19, marking the sharpest weekly decline since February. The December contract on ICE New York was down 10.64% by September 18 to around $5.3 thsd/t.

Over three weeks, prices dropped by about 20%, from $6.7 thsd/t at the end of August to $5.3 thsd/t. After rising to $6.8 thsd/t in September, profit-taking intensified and accelerated the sell-off.

Improving supply has been the main source of pressure. Cocoa exports from Côte d’Ivoire were up 18% year on year as of September 13, while ICE warehouse stocks reached a two-year high of around 3.42 mln bags.

Favorable weather in West Africa and reduced cocoa use in some manufacturers’ recipes after the previous sharp increase in raw material costs are adding further pressure to prices.

Despite the decline in futures, retail chocolate prices in many countries have yet to fall. Manufacturers are still operating under long-term cocoa supply contracts signed earlier at significantly higher prices.

Tags: prices, Ivory Coast, cocoa