Cocoa slides nearly 6% as weak European demand and rising supply pressure futures
AI Market Summary
Cocoa futures slid nearly 6% to two-month lows as demand signals weakened and supply/inventories looked ample. European Q2 grindings fell 4.6% to a six-year low, while Ivory Coast port arrivals are up 21% y/y and ICE stocks rose to a two-year high, reinforcing near-term oversupply. Stronger North American and Asian grindings and El Niño-driven crop risks provide medium-term support but are being outweighed by current data.
Impact level
● Medium
Affected assets
NCCOCOCOA2USD/USDT-1.50%
AI Insight · NCCOCOCOA2USD/USDTAI Insight
▼ Bearish
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Cocoa futures sank nearly 6%, sending both New York and London contracts to their lowest levels in two months. The selloff followed a 4.6% year-on-year drop in Europe’s Q2 cocoa grindings to a six-year low, alongside signs of ample near-term supply including a 21% jump in Ivory Coast port arrivals and ICE stocks at a two-year high. North American and Asian grindings rose more than expected, and longer-term risks tied to El Niño and early crop checks remain in view. Still, the latest demand and inventory data dominated market pricing, reinforcing a clear bearish catalyst.
