Cocoa futures were trading near $3,300 per tonne, close to their lowest levels since August 2023, as an improving supply outlook and signs of abundant inventories weighed on prices. Farmers in West Africa reported that steady rainfall has enhanced cocoa pod development in both Ivory Coast and Ghana. Earlier in the month, authorities in these two key producing countries cut the fixed farmgate price paid to cocoa growers in an effort to stimulate sales following the recent drop in global prices.
Weakening global demand has accelerated the build-up of cocoa stocks, putting significant pressure on major producing nations. Recent data showed that ICE-monitored cocoa inventories climbed to a 7.25-month high of 2,273,550 bags as of March 16, underscoring the perception of increased supply availability. Even so, dealers emphasized that part of this inventory rise continues to reflect a cautious stance from the global cocoa-processing and chocolate industry.
