{"id":3684,"date":"2025-03-07T19:40:00","date_gmt":"2025-03-08T00:40:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/03\/07\/dollar-weakness-supports-gains-in-cocoa-prices\/"},"modified":"2025-03-07T19:40:00","modified_gmt":"2025-03-08T00:40:00","slug":"dollar-weakness-supports-gains-in-cocoa-prices","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/03\/07\/dollar-weakness-supports-gains-in-cocoa-prices\/","title":{"rendered":"Dollar Weakness Supports Gains in Cocoa Prices"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>May ICE NY cocoa (CCK25) today is up +68 (+0.83%), and May ICE London cocoa #7 (CAK25) is up +59 (+0.92%).<\/p>\n<p>Cocoa prices today are moderately higher as they recover further from Tuesday&#8217;s 3-1\/2 month low. \u00a0Today&#8217;s fall in the dollar index (DXY00) to a 4-month low has prompted short covering in cocoa futures. \u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-mQU\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-mQU')) {             googletag.display('js-dfp-tag-mQU');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>     <span>Commodity Bulletin: <\/span> From crude oil to coffee, this FREE newsletter is for industry pros and rookies alike  <\/p>\n<p>\u00a0<\/p>\n<p>Cocoa prices have been on the defensive over the past two weeks and fell to 3-1\/2 month lows on Tuesday on an improving supply outlook. \u00a0Last Friday, the International Cocoa Organization (ICCO) forecasted a global cocoa surplus of 142,000 MT for 2024\/25, the first surplus in 4 years. \u00a0ICCO also forecasted that 2024\/25 global cocoa production will rise +7.8% y\/y to 4.84 MMT.<\/p>\n<p>Also on the bearish side, Nigeria reported last Thursday that its Jan cocoa exports jumped +27% y\/y to 46,970 MT. \u00a0Nigeria is the world's fifth-largest cocoa producer.<\/p>\n<p>Demand concerns are also weighing on cocoa prices. \u00a0Executives from chocolate makers Hershey and Mondelez recently warned that high prices are hurting demand. \u00a0On February 4, Mondelez executives warned of a potential slowdown in chocolate demand when CFO Zarmella said, \"We are seeing signs, particularly in parts of the world like North America, where cocoa consumption is coming down.\" \u00a0Also, on February 18, the company warned that chocolate prices could rise as much as 50% due to the surge in cocoa prices, which would curb chocolate demand. \u00a0In addition, Hershey executives said on February 6 that high cocoa prices are forcing it to reformulate recipes by replacing cocoa with other ingredients. \u00a0<\/p>\n<p>High cocoa prices reduced cocoa demand in Q4, as seen in the quarterly grinding reports. \u00a0On January 9, the European Cocoa Association reported that Q4 European cocoa grindings fell -5.3% y\/y to 331,853 MT, the lowest in more than 4 years. \u00a0Also, the Cocoa Association of \u00a0Asia reported that Q4 Asian cocoa grindings fell -0.5% y\/y to 210,111 MT, also the lowest in 4 years. \u00a0In addition, the National Confectioners Association reported that Q4 North American cocoa bean grindings fell -1.2% y\/y to 102,761 MT.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-4pE\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-4pE')) {             googletag.display('js-dfp-tag-4pE');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Concern about slowing Ivory Coast cocoa exports is a supportive factor for cocoa prices. \u00a0While government data today showed Ivory Coast farmers shipped 1.39 MMT of cocoa to ports so far in this marketing year from October 1 to March 2, up +17% from last year, the pace has fallen from the 35% rise seen in December.<\/p>\n<p>Tight global cocoa inventories are bullish for prices. \u00a0ICE-monitored cocoa inventories held in US ports have been trending lower for the past 1-1\/2 years and fell to a 21-year low of 1,263,493 bags on January 24. \u00a0However, as of Monday, cocoa inventories have since recovered to a 2-3\/4 month high of 1,463,836 bags.<\/p>\n<p>Smaller cocoa supplies from Ghana, the world's second-biggest cocoa producer, are supportive for prices after Cocobod, Ghana's cocoa regulator, cut its Ghana 2024\/25 cocoa harvest forecast in December for the second time this season to 617,500 MT, down -5% from an August estimate of 650,000 MT. \u00a0<\/p>\n<p>The ICCO last Friday said the 2023\/24 global cocoa deficit was -441,000 MT, the largest deficit in over 60 years. \u00a0ICCO said 2023\/24 cocoa production fell -13.1% y\/y to 4.380 MMT. \u00a0ICCO said the 2023\/24 global cocoa stocks\/grindings ratio was 27.0%, a 46-year low.\u00a0<\/p>\n<div class=\"taboola-placeholder\">\n<div id=\"taboola-mid-article-thumbnails\"><\/div>\n<\/div>\n<p>                 <script type=\"text\/javascript\">                     !function (e, f, u) {                     e.async = 1;                     e.src = u; f.parentNode.insertBefore(e, f);                     }(document.createElement('script'), document.getElementsByTagName('script')[0], '\/\/cdn.taboola.com\/libtrc\/nasdaq-nasdaq\/loader.js');                     window._taboola = window._taboola || [];                     _taboola.push({                       mode: 'thumbnails-a-mid',                       container: 'taboola-mid-article-thumbnails',                       placement: 'Mid Article Thumbnails',                       target_type: 'mix'                     });                     _taboola.push({article:'auto', url:''});                 <\/script><i>     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy          here. <\/i><\/p>\n<p>\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-F5c\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-F5c')) {             googletag.display('js-dfp-tag-F5c');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p> More news from Barchart <\/p>\n<ul>\n<li>Is the Rally in Cocoa Running Out of Upside Steam?<\/li>\n<li>Soft Commodities Q4 and 2024- Where are they Heading in 2025?<\/li>\n<li>Commodity Market Roundup- December\u2019s Top Performers and Underperformers<\/li>\n<li>Where is Cocoa Heading in 2025?<\/li>\n<\/ul>\n<div class=\"video__inline\">\n<div class=\"video-placeholder\"><\/div>\n<\/div>\n<p>                       <script type=\"text\/javascript\">                       \/\/ Run Ex.co Script and mid-article placement                      (function (d, s, n) {                          var js, fjs = d.getElementsByTagName(s)[0];                          js = d.createElement(s);                          js.className = n;                          js.src = \"http:\/\/player.ex.co\/player\/4c49b82f-103d-41ce-9191-ffa4d1f737fb\";                          fjs.parentNode.insertBefore(js, fjs);                      }(document, 'script', 'exco-player'));                      \/\/ Ex.co placeholder div                      var element = document.getElementsByClassName('video-placeholder')[0];                      var excoDiv = document.createElement('div');                      excoDiv.id = '4c49b82f-103d-41ce-9191-ffa4d1f737fb';                      if (element && document.getElementById('4c49b82f-103d-41ce-9191-ffa4d1f737fb') == undefined) {                         element.append(excoDiv);                      }                     <\/script>                                                                     <\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>May ICE NY cocoa (CCK25) today is up +68 (+0.83%), and May ICE London cocoa #7 (CAK25) is up +59 (+0.92%). Cocoa prices today are moderately higher as they recover further from Tuesday&#8217;s 3-1\/2 month low. \u00a0Today&#8217;s fall in the dollar index (DXY00) to a 4-month low has prompted short covering in cocoa futures. \u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[18],"tags":[],"class_list":["post-3684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/3684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=3684"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/3684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/3685"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=3684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=3684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=3684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}