Cocoa Price Forecast: A Sweeter Supply Outlook

Cocoa prices are expected to decline by nearly a third by year-end due to increased supply and reduced demand. Traders forecast London cocoa prices to fall to 5,500 pounds per metric ton. Improved crop conditions and price adjustments are driving these changes, despite past record highs.

Cocoa prices are poised for a significant decline, predicted to fall by nearly one-third by the end of the year. Experts attribute this anticipated drop to increased supply from regions beyond West Africa and a dip in demand, driven by previously elevated prices.

The Reuters poll of 11 traders and analysts projects London cocoa to end the year at 5,500 pounds per metric ton, a notable decrease from Thursday's closing price and significantly lower than the peaks seen in 2024.

Despite cocoa's past record highs due to adverse weather impacts in key producing regions Ivory Coast and Ghana, improved agricultural practices and better weather forecasts in West Africa are expected to stabilize supply, aiding price reductions.

(With inputs from agencies.)