Cocoa prices in the global market fall as fund liquidations and exports surge

Cocoa prices fell on Friday, weighed down by massive liquidations in weak year-end markets. The ICE NY March contract fell 905 points (-8.21%), while the ICE London contract fell 994 points (-10.88%). This decline was exacerbated by profit-taking amid high export volumes by major producers such as Ivory Coast. Recent data shows that Ivorian farmers shipped 970,945 tonnes of cocoa between October 1 and December 15, marking a 30% increase compared to 744,967 tonnes in the same period last year. Meanwhile, Nigeria, the world’s sixth-largest producer, also increased its exports in November, registering a 35% increase to 38,015 tonnes. Despite the downward pressure, weather conditions in West Africa remain a concern for the market. Recent warnings from Maxar Technologies indicate that prolonged drought in the region is hampering the development of cocoa plantations, especially with seasonal Harmattan winds. These factors could further compromise the harvest expected in April. This ...