FX.co ★ Cocoa Futures at Near 2-Year Low

Cocoa futures stood at approximately $5,050 per tonne, maintaining proximity to the lowest levels observed since January 2024. This stability is supported by encouraging tariff developments and an optimistic perspective on global supply. On November 14, President Donald Trump signed an executive order that exempts cocoa, coffee, tropical fruits, nuts, and several other agricultural inputs from reciprocal tariffs, with these changes being applied retroactively. Concurrently, optimism regarding robust harvests in West Africa has led to expectations of a global supply surplus. Additionally, the European Union's intention to postpone and revise regulations concerning deforestation is exerting additional downward pressure on prices. This regulatory delay mitigates immediate supply worries and enables EU countries to continue importing agricultural products from regions such as Africa, Indonesia, and South America, where deforestation is prevalent.