# Cocoa Prices Rise to Multi-Week Highs on Strong Demand and West African Supply Risks

- URL: https://stocks.freetheai.org/news/cocoa-prices-rise-to-multi-week-highs-on-strong-demand-and-west-african-supply-2e2b28
- Published: 2026-10-14T16:03:55Z
- Category: commodities; sentiment: mixed; impact: medium
- Symbols: [ICEUS:CC1!](https://stocks.freetheai.org/symbols/ICEUS-CC1!)
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Cocoa futures rallied to multi-week highs following strong demand indicators from Asia and growing supply concerns in key producing regions. Malaysia reported a 47% year-over-year increase in third-quarter cocoa grindings to 890,414 metric tons. At the same time, heavy rainfall in the Ivory Coast has damaged infrastructure, restricting farmer access to fields and slowing deliveries to ports at the start of the harvest season.

Supply prospects remain constrained by weather and disease factors across West Africa. The emerging El Nino climate pattern threatens drier weather in upcoming months, while early assessments for the 2026/27 Ivory Coast crop project an 18% production decline to 1.8 million metric tons. Additionally, Ghana's cocoa regulator expects its 2026/27 harvest to drop 13% to 650,000 metric tons as black pod disease and aging trees reduce output.

Gains remain capped by bearish supply and currency pressures. Exchange inventories monitored by ICE reached a 2.25-year high of 3,578,471 bags, while recent strength in the US dollar index created additional headwinds for dollar-denominated commodities. Investors are watching upcoming global third-quarter grindings reports to evaluate whether broader chocolate demand will sustain price momentum.

## Key points

- Malaysia reported a 47% year-over-year jump in third-quarter cocoa grindings to 890,414 metric tons.
- Heavy rains in the Ivory Coast damaged roads and bridges, hindering harvest efforts and port deliveries.
- Early surveys project Ivory Coast cocoa production to drop 18% in the 2026/27 season to 1.8 million metric tons.
- ICE cocoa inventories climbed to a 2.25-year high of 3,578,471 bags, capping price gains.

## Questions and answers

### Why are cocoa prices rising?

Cocoa prices are rising due to strong demand data, such as a 47% surge in Malaysia's third-quarter grindings, alongside harvest disruptions from heavy rains and disease in West Africa.

### What is the supply outlook for West African cocoa?

Production in the Ivory Coast is projected to fall 18% in the 2026/27 season, while Ghana expects output to decline 13% due to crop disease, aging trees, and dry El Nino weather patterns.

### What factors are limiting gains in cocoa prices?

Price gains are limited by exchange inventories reaching a 2.25-year high of 3,578,471 bags, a stronger US dollar, and higher cumulative port shipments from previous harvests.