On Monday, cocoa prices declined due to tighter supplies and fears of chocolate demand, which battered its prices.
In the Asian afternoon session, the commodity’s futures for December delivery in the closed session plummeted by -6.47% to $7,745.00 per metric ton.
According to reports, West Africa’s lower cocoa output has supported the price hike. Government data revealed that Ivory Coast crop growers shipped 1.76 million metric tons (MMT) of cocoa to ports, -25.00% lower than the same time last year.
Furthermore, the commodity prices found support after Ghana raised farmers’ cocoa payments by 45.00% to $3,063.00 per ton for the 2024/25 season. The increase, below the expected 65.00%, may lead farmers to hoard beans, anticipating higher prices.
Additionally, prices increased following Accra’s Cocobod’s reduction of its 2024/25 cocoa production estimate to 650,000.00 metric tons (MT) from 700,000.00 MT. Due to bad weather and crop disease, Ghana’s 2023/24 harvest dropped to a 23-year low of 425,000.00 MT.
The International Cocoa Association (ICCO) raised its 2023/24 global cocoa deficit estimate to -462,000.00 MT, the largest in over 60 years.
ICCO has also reduced its cocoa production estimate to 4.33 MMT and projected a 46-year low global stocks or grindings ratio of -27.40% decline.
Ivory Coast Surges Cocoa Farmgate Price
West African Agriculture Minister disclosed Monday that Ivory Coast has increased the farmgate price paid to cocoa farmers.
The farmgate has raised by 20.00% to 1,800 CFA francs ($3.09) a kilo for the main crop of the 2024/25 season.
Furthermore, Agriculture Minister Kobenan Kouassi Adjoumani revealed that a -25.00% slide marked the current season in the cocoa output in West Africa and Ivory Coast.
Meanwhile, Ghana implemented a similar price increase, coordinating farmgate prices and supplies with the other major cocoa producers to support the sector. This collaboration aims to boost farmer incomes and sustain cocoa production.
In early September, Ghana increased its farmgate cocoa price by nearly 45.00% to 48,000 cedis ($3,043.75) per metric ton.
