Cocoa Prices Sharply Lower as Supplies Increase and Demand Falters

May ICE NY cocoa fell 207 ticks (-6.40%) to a one-month low while May ICE London cocoa dropped 128 ticks (-5.21%) to a 1.5-week low. Prices settled sharply lower amid reports of increased cocoa supplies. This decline is material for cocoa-linked exposures and derivatives positions; monitor supply updates and positioning for further downside risk.

Analysis

May ICE NY cocoa fell 207 ticks (-6.40%) to a one-month low while May ICE London cocoa dropped 128 ticks (-5.21%) to a 1.5-week low. Prices settled sharply lower amid reports of increased cocoa supplies. This decline is material for cocoa-linked exposures and derivatives positions; monitor supply updates and positioning for further downside risk.