FX.co ★ Cocoa Futures Remains Near 2023-Lows

Cocoa prices have retreated to just under $3,000 per tonne, their lowest level since May 2023, under pressure from weak demand, abundant supply, and expectations of a strong upcoming harvest in key producing countries. At the same time, substantial volumes of cocoa remain unsold in top growers Ivory Coast and Ghana, as buyers push back against farm-gate prices set above international market levels, constraining governments’ ability to maintain elevated producer prices. Ivory Coast is reportedly considering cutting the price it pays to farmers to bring it in line with Ghana, in response to the sharp fall in global cocoa prices. The latest data show ICE cocoa inventories rose to a 5.25-month high of 2,111,554 bags as of February 20.