Cocoa Futures Fall on Supply Surge

Cocoa futures slid to $6,950 per tonne, the lowest in since September 9, driven by expectations of a substantial global surplus in the 2025/26 season, fueled by weak demand and strong production prospects.

Recent heavy rains across Ivory Coast, the world’s top cocoa producer, have boosted the outlook for the main crop, with large volumes expected to enter the market from mid-October.

Farmers reported improved pod growth and good bean quality, though some cautioned that more sunshine is needed to prevent mold on early-harvested beans.

Ecuador is also set to produce over 650,000 metric tons this season, potentially surpassing Ghana as the world’s second-largest producer.

With strong supply forecasts from major producers, the market remains defensive, pressuring futures lower.