Cocoa prices declined to about $5,330 per tonne, the lowest level in nearly three weeks, extending their pullback from the eight-month high of $6,455 reached on July 9. Traders are now closely watching upcoming earnings reports from major chocolate manufacturers for signs that high prices are no longer constraining consumer demand.
On Tuesday, Lindt indicated it may implement selective price reductions in the second half of 2026 to support sales volumes, after its half-year results raised concerns about the momentum of demand growth. At the same time, Citigroup shifted to a neutral stance on cocoa after previously being bullish, stating it wants clearer evidence of El Niño-related crop damage and more robust demand before turning positive again.
On the supply side, the International Cocoa Organization projects Indonesia’s cocoa output will increase to 220,000 tonnes in the 2025/26 season, up from 200,000 tonnes in the previous year.
