The global cocoa market is experiencing a significant drop in prices: the cost of cocoa beans has reached its lowest point in the last 20 months. In New York, a ton of cocoa this week cost around $6,150, which is nearly half of the record high of over $12,000 in December.
This is reported by Finway
Price Dynamics on Key Exchanges
In London, the situation is similar: after nearly tripling at the beginning of last year, the price of cocoa has decreased by approximately 58% compared to the April 2024 peak, when a ton cost $4,262.
Reasons for the Decline and Future Forecasts
Experts indicate that the sharp drop in prices is linked to a decrease in consumer demand caused by the previous rise in costs, as well as positive forecasts regarding the harvest. Favorable weather conditions and the increase in government-guaranteed prices in West African countries play a crucial role.
“The harvest for 2025/2026, which began on October 1, is expected to lead to an oversupply exceeding global demand.”
Thus, the industry is preparing for an oversupply, which may continue to support low cocoa prices worldwide.