FX.co ★ Cocoa Futures Hit Near 2-Year Low

Cocoa futures have continued their decline, reaching approximately $5,200 per tonne—marking the lowest point since January 2024. This downturn is primarily attributed to an improved forecast for West African output. According to reports from cocoa farmers in Ivory Coast, the cocoa trees are thriving, and recent dry weather conditions have facilitated the drying of harvested beans, which augurs well for the October-to-March season. Meanwhile, dealers have observed an increase in cocoa arrivals from the leading producer, Ivory Coast, following a sluggish start to the season. In addition, the anticipation of possible tariff reductions is exerting downward pressure on cocoa prices. US Treasury Secretary Scott Bessent indicated that the Trump administration is poised to announce a comprehensive package of agricultural tariff cuts in the near future.