Cocoa futures dump 6% amid heavy rains in West Africa 📉
Cocoa futures on ICE (COCOA) are losing almost 6% today, pressured by heavy rains in West Africa, which may increase the supply from key-growing regions. Easing supply concerns leads today to a wild market move and the largest cocoa price drop since months. The outlook for additional rainfall in West Africa may significantly improve this year African cocoa crop.
- Weather forecasts are calling for showers to continue through the week in both key cocoa producing countries: Ivory Coast and Ghana (the two largest cocoa-producing economies).
- Despite the recent rain, drought in West Africa still covers more than a third of Ghana and the Ivory Coast (African Flood and Drought Monitor data).
- After falling to a 21-year low of 1,26 mln bags on January 24, ICE-monitored cocoa inventories held in US ports rebounded significantly, climbing to an 8-3/4 month high of 2,26 mln bags according to the largest ICE inventories reading.
COCOA (H1 interval)
Cocoa drops today to $9600, testing 23.6 Fibonacci retracement of the latest downward wave from May. Traders such watch out to the upcoming cocoa futures rollover (10 June 2025).
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
Recently, the spread between the nearest contracts has widened significantly, indicating short-term spot market demand. At the same time, lower prices for the September contract may reflect greater certainty about higher supply. Source: Bloomberg Finance LP, XTB
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
