The price of cocoa decreased to the lowest level in 20 months with the end of the registration march

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Cocoa prices fell to its lowest level in 20 months, which put the end of a two -year dramatic march that prompted the market to record its highest levels and the manufacture of chocolate chocolate manufacturers worldwide.

New York Cocoa was traded this week by about $ 6,150 per ton – a decrease from the December summit of more than $ 12,000. Meanwhile, the London prices, which doubled almost three times in the opening months last year, decreased by about 58 percent of their peak in April 2024 at $ 4262.

Analysts say that the decline reflects a decrease in the demand for consumers as a result of high prices, in addition to better crops in view of the weather improvement and high master’s prices in West Africa. In addition, the speculators who had previously gathered to throw their sites recently, as many are now betting on the low prices.

“We had very ridiculous levels that were not sustainable in the long run,” said Rabobank’s commodity analyst, Oren Van The prices were sliding for most of the year, “but especially since it was in the middle of August (they have) in a gradual direction.”

The sale is a sharp reflection after the shock of the offer in 2022 in the Ivory Coast and Ghana, which together produces about 60 percent of cocoa in the world. Dry weather, disease and years of investment by farmers who have not been able to bear the costs of fertilizers or replace the aging trees that sent futures prices.

These show concerns are now alleviating. The rain returned after the early drought season last year, which reduced the failed threat of another crop. The predictors expect that the 2025-26 harvest, which started on October 1, will result in a surplus of global demand offer.

Governments in West Africa sharply raised the prices they pay to farmers, a step expected to boost the offer. Before the elections, Ivory Coast raised its guaranteed price by more than 25 percent to about $ 5,000 per ton in dollars, prompting Ghana to raise its level to 58000 CEDIS (about $ 4,600).

Enthropy is better seen as a potential to encourage farmers to sell through official channels instead of smugglers, tree specialization, fertilizer and new cocoa cocoa – may increase production over time.

“We already see in the countryside the producers and their families to invest more in cocoa cultivation,” said Ange-Laurent Gnagne, CEO of Scoopega-Scoops, in GAGNOA, CEO of Scoopega-Scoops in the Ivorian city of Ganio.

Meanwhile, despite the poor crop from the growth season that ends on September 30 this year, the market returned to a small surplus as the price of high consumers in sweets declined.

“This surplus was not because we are now producing more cocoa than we were producing in those years in which we were deficit. This is because of the low demand.”

Chocolate consumption has not yet recovered from the shock of the prices of the past two years, which has reached the demand. Berkeman said that Global Grindings – a main measure of the use of cocoa – decreased by about 500,000 tons since its peak in 2022, before the shock of the show. He added that the largest drops came in Asia, Europe and West Africa.

Despite the last sharp decline in the market, retail prices are still high. In the Netherlands, the tape costs 100 grams average more than 35 per cent in September compared to the previous year, according to Rabobank.

Parkman said consumers may expect prices to stop, but they will not start going down for at least six months.

Meanwhile, Brussels has been delayed for the second time a law that requires companies to buy goods such as cocoa and coffee to prove that they do not arise from heavy areas. The law, which was scheduled to enter into force at the end of the year, was postponed for another 12 months, which reduces any urgent impulsion to provide imports before the new rules.

However, despite the sharp decline, few expect the market to return to the pre -2013 era, when New York traded cocoa between $ 2000 and $ 3000. The show is still bound by aging, crop diseases and climate risk.

According to the research presented at the European Cocoa Forum in Malta last month, “35 percent of the current cocoa production levels in Ivory Coast may disappear by 2050 … 25 percent due to climate change and 10 percent due to the cocoa -swollen virus,” said Van Dor.

“The question is, is it possible to compensate for such production losses by the rest of the world?” He added.