Cacau retreats with signs of higher global supply

Throughout the period, the market began to incorporate the expectation of a higher available volume, which pressured quotations in the main trading centers. This movement gained strength with reports of stockpiles accumulating in warehouses in Ivory Coast, the world's largest cocoa producer, indicating a mismatch between supply and demand. The formation of these stockpiles is associated with a weaker consumption environment, which limits the absorption of the product even in a scenario of lower prices. Another factor highlighted was the deterioration of trade conditions in the African country. The drop in international quotations led futures prices to fall below the fixed values practiced internally in Ivory Coast, which discourages marketing and contributes to the retention of cocoa in warehouses. This scenario hinders the normal flow of the supply chain and increases the perception of excess supply in the short term. With the combination of high stockpiles, weaker demand, and ...