Cocoa Futures Drop as Ivory Coast Deliveries Increase

AFRICAN STOCKS AND FINANCEOctober 23, 2024 at 5:30 PM UTC

TLDR

Cocoa futures in New York and London fell significantly due to rising deliveries of cocoa beans in Ivory Coast, easing concerns over tight supplies.
Bean arrivals for the current season have increased by 13% compared to the same period last year, reaching 192,804 tons.
Improved weather conditions in Ivory Coast have led to increased pod harvesting and drying, prompting the country to revise its 2024-25 harvest forecast to potentially 2.2 million tons.

Cocoa futures fell to a two-week low as rising deliveries of cocoa beans to ports in Ivory Coast, the world’s largest cocoa producer, eased concerns over tight supplies. Cocoa futures in New York fell as much as 5.1% to $7,014 a ton, while futures in London dropped by 4.5%.

Bean arrivals for the season, which began on October 1, have reached 192,804 tons, marking a 13% increase from the 170,794 tons delivered during the same period last year, according to ADM Investor Services Inc.

The increase in deliveries follows a period of heavy rains in Ivory Coast that disrupted cocoa farming and transportation. With weather conditions improving, pod harvesting and drying have picked up, and the country has revised its 2024-25 harvest forecast to as much as 2.2 million tons, based on a new pod count.

Points clés à retenir

Rising cocoa bean arrivals in Ivory Coast have alleviated some supply concerns, contributing to a drop in cocoa futures. However, concerns over cocoa demand have also emerged after mixed grinding data from Europe, Asia, and North America. While grindings in North America and Asia rose, Europe, the largest cocoa-consuming region, saw a 3.3% decline in processing in the third quarter compared to a year earlier.

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