12.03.202616:07:24UTC+00Cocoa Futures Ease as Market Consolidates

Cocoa futures slipped below $3,300 per tonne, extending a period of consolidation after reaching nearly $3,450 on March 10 — a three-week high driven by strong export activity and geopolitical tensions. According to Reuters, local cocoa mills in Ivory Coast secured more than 400,000 tons in export contracts within just ten days of the resumption of purchases, highlighting renewed market activity as industry players move to capitalize on the recent price pullback.

Nonetheless, underlying market fundamentals remain weak, weighed down by subdued demand and abundant global supply. ICE-certified inventories climbed again, hitting a seven-month peak of 2,228,827 bags as of March 11. Dealers noted that this level continues to indicate cautious demand from the global cocoa industry.

At the same time, top producer Ivory Coast is considering reforms to its commodity trading system. The aim is to align farm-gate prices more closely with international market levels, following a sharp decline in global cocoa prices and growing difficulties in marketing the country’s output.