Cocoa price continues to fall sharply due to weak demand

The cocoa prices also fell sharply again this week. The market, which has turned significantly in recent weeks, is particularly influenced by weak demand and more favorable prospects for future supply. The cocoa price has continued to decline over the past two weeks. On Tuesday, October 7, cocoa was traded on the ICE in London for $5,729.26 per ton. This is a decrease of 13.5% compared to a month earlier. Thus, the structural decline in the cocoa price continues. Compared to a year ago, the price has even fallen by 31.6%. With the decline, the cocoa price on the ICE in London is at its lowest level since February 2024. Although growth expectations remain strong, this is not the main cause of the lower prices at this moment. The declining demand is primarily putting pressure on cocoa prices. Since the peak in demand in 2022, the amount of cocoa being processed has decreased by approximately 500,000 tons. Particularly in Asia, Europe, and West Africa, sales continue to lag. Better prospects are importantIn addition, better prospects are causing pressure on cocoa prices. Developments in this area largely correspond to the last few weeks. Favorable weather conditions in Ivory Coast have led to optimism about the upcoming cocoa harvest. Growers report that the fruits are developing well and that the chances of a strong harvest are increasing. The Ivorian government is playing an active role by investing in infrastructure, agricultural training, and financial support. Thanks to these measures, farmers can apply modern cultivation techniques and make use of better fertilizers and crop protection. This not only leads to higher yields but also to improved quality of the cocoa. As a result, the pressure on international cocoa prices has increased in recent weeks. Cocoa production in Ecuador is growing rapidly and further pressuring the world market. Thanks to favorable prices for growers, the country is steadily expanding its cultivation area. Ecuadorian producers achieve a higher yield per kilo than other producing countries. This economic incentive stimulates investments in modern cultivation and processing, resulting in increasing export volumes. Thus, Ecuador strengthens its position as the most important growth market in the global cocoa sector.