01.04.202614:51:53UTC+00Cocoa Futures Hover Around 2023-Lows

Cocoa futures were trading at around $3,300 per tonne in early April, consolidating after a bout of fund short covering at the end of March. Prices remain close to their August 2023 lows, as market fundamentals continue to reflect expectations of ample supply and subdued demand.

In Ivory Coast, the world’s leading producer, favorable weather has improved the outlook for the March–August mid-crop. Above-average rainfall last week has reinforced expectations of a longer and more robust harvesting season. At the same time, certified stocks tracked by ICE have continued to climb, reaching an 8.25‑month high of 2,362,668 bags as of March 31.

Market focus is now turning to Q1 grinding data for Europe and North America, scheduled for release on April 16, for clearer signals on demand. The prevailing view among market participants is that the figures will highlight the ongoing fragility of global demand, underscoring the lasting impact of elevated prices throughout 2024 and the consequent adjustment in industry consumption.