Cocoa Prices Dip Amid Demand Concerns
Cocoa futures declined sharply in New York, approaching a weekly loss. The drop stems from concerns that demand may be waning following record-high prices.
The recent surge in cocoa prices, driven by poor West African output, has prompted the market to monitor signs of slowing demand. Sales of the upcoming Ivorian harvest have been slow, potentially indicating higher hedging costs for traders.
Consumer chocolate consumption is also under scrutiny. Executives from major chocolate manufacturers have hinted at further price increases, raising concerns about consumer behavior.
Meanwhile, a dispute in Ivory Coast between exporters and local shippers has added to market tightness concerns. Local shippers are seeking permission to export beans to alternative clients, underscoring the ongoing supply challenges in the region.
Analysts predict that these structural output challenges will continue to impact chocolate production through 2025.