FX.co ★ Cocoa Prices Slide on Improved Harvest Outlook

Cocoa prices continued their decline in January, approaching $5,200 per tonne, marking the lowest point since late November. This drop is attributed to favorable weather patterns that are anticipated to enhance supply. This decrease comes on the heels of cocoa's most significant annual decline on record in 2025, during which prices fell by 48.1%. Earlier in the year, drought worries in West Africa had driven prices up, but as the year progressed, these concerns eased due to improved harvest prospects, resulting in cocoa prices finishing 2025 at $6,056 per tonne. Meanwhile, favorable weather conditions across key cocoa-producing areas in West Africa, notably Ivory Coast and Ghana, are anticipated to lead to increased harvests in February and March, heightening farmers' expectations for improved crop quality. Despite the projected increase in output, demand is expected to remain subdued. Farmers from Ivory Coast have observed that the unusual rainfall could significantly enhance production, while data from European processors is expected to reflect weak consumption levels.