Cocoa price continues to decline significantly due to weak demand

The cocoa prices also dropped significantly again this week. The market, which has changed considerably in recent weeks, is mainly influenced by weak demand and more favorable prospects for future supply. The cocoa price has further decreased over the last 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 cocoa prices continues. Compared to a year ago, the price has even dropped by 31.6%. With this decrease, the cocoa price on the ICE in London is at its lowest level since February 2024. Although growth expectations remain strong, this is not currently the main cause of the lower prices. The declining demand is especially putting pressure on the cocoa price. Since the peak in demand in 2022, the quantity of cocoa being processed has decreased by about 500,000 tons. Particularly in Asia, Europe, and West Africa, sales lag behind. Better prospects are important In addition, better prospects are putting pressure on cocoa prices. The developments in this area largely correspond to those in recent weeks. Favorable weather conditions in Ivory Coast have led to optimism about the upcoming cocoa harvest. Farmers report that the fruits are developing well and that the chances of a strong harvest are increasing. The Ivorian government plays an active role in this 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 an improved quality of 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 farmers, 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, which keeps export volumes increasing. Thus, Ecuador strengthens its position as the most important growth market in the global cocoa sector.