Cocoa Hits Eight-Month Low as Supply Outlook Improves

Cocoa prices have fallen to their lowest level in eight months, according to official market data. This drop comes as West Africa, which produces most of the world’s cocoa, reports better harvests.

Ghana raised its cocoa crop forecast by 8.3% for the 2025/26 season, and Ivory Coast’s cocoa arrivals are up nearly 6% from last year. As a result, cocoa stocks in ICE warehouses reached 2.3 million bags, the highest since September 2024.

London cocoa prices dropped 1.9% to £5,441 per ton, while New York prices fell 1.5% to $8,101 per ton. However, experts warn that long-term problems remain.

West African cocoa farms face shrinking land due to illegal mining, older trees, and plant diseases. New European rules also limit cocoa imports linked to deforestation. These issues could limit how much further prices fall.

Coffee markets show mixed trends. Arabica coffee prices dropped to $2.90 per pound, their lowest in over seven months, as Brazil’s harvest goes well and farmers sell quickly.

Robusta coffee prices rose slightly to $3,627 per ton after hitting a one-year low, helped by strong crops in Brazil and Vietnam. The United States recently added a 20% tariff on Vietnamese coffee, which could affect prices and trade.

Sugar prices have rebounded after hitting a four-year low. Raw sugar futures rose 5.1% to 16.38 cents per pound, helped by Pakistan’s plan to import 500,000 tons to stabilize local prices and shipping delays in Brazil, the world’s top exporter.

White sugar prices also climbed to $481.50 per ton. Still, experts expect global sugar supplies to rise, which could keep prices from going much higher. These changes matter for everyone. Cocoa, coffee, and sugar prices affect the cost of everyday foods and drinks.

They also impact millions of farmers’ incomes worldwide. Weather, disease, and new trade rules can quickly change these markets, so prices may keep moving in the months ahead.

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