FX.co ★ Cocoa Futures Extend Slide

Cocoa futures continued to fall, reaching approximately $4,900 per tonne, marking the lowest level since January 2024. This decline is primarily driven by an anticipated increase in global surplus due to improved supply from West Africa. After experiencing a sluggish start in October, Ivory Coast, the leading cocoa producer, has reported cocoa arrivals exceeding 100,000 tons for three consecutive weeks, aligning supply levels closely with those of the previous year. This surge in production has been supported by favorable weather conditions, characterized by light rains that have enhanced crop growth and expedited the harvest. Additionally, the market is seeing higher carryover supplies from the previous mid-crop, fueled by the increased prices received by farmers. The European Union's decision to delay and modify deforestation regulations has further contributed to the downward pressure on prices. Moreover, recent developments in tariff policies are affecting the market; notably, on November 14, US President Donald Trump issued an executive order exempting products such as cocoa, coffee, tropical fruits, nuts, and several other agricultural imports from reciprocal tariffs.