Cocoa prices continued their slide to trade near $3,400 per tonne, a fresh low since October 2023, reflecting weaker demand and improved supply prospects, which have contributed to restocking in key producers.
Warehouses in Ghana and the Ivory Coast continue to accumulate unsold cocoa beans, even after Ghana cut farmer payouts to encourage supply.
At the same time, ICE cocoa inventories rose to a 4.25-month high of 1,942,367 bags on Friday, signaling that more cocoa is available for immediate delivery than is being absorbed by the market.
The accumulation of inventories and delays in sales increases the risk of additional pressure on international prices.
Significantly enhanced production prospects are attributed to improved weather in West Africa, including Ivory Coast and Ghana, as well as higher production in South America.