Cocoa Prices Settle Mixed as Dollar Strength Offsets Ivory Coast Weather Concerns
Cocoa futures settled mixed on Friday, with New York contracts closing unchanged and London contracts scoring modest gains. A strengthening U.S. dollar limited price movement, balancing out immediate supply disruptions caused by excessive rainfall in West Africa.
Heavy rains in the Ivory Coast cut off roads and damaged bridges, slowing cocoa shipments to ports. However, rising exchange inventories—reaching a 2.25-year high of 3,559,258 bags—and weakening consumer demand continue to weigh on the market. Chocolate maker Lindt & Sprungli lowered its 2026 sales growth outlook to 0% to 2%, while processor Cargill reported quarterly mark-to-market losses after struggling to pass on elevated commodity costs.
Traders are closely monitoring weather patterns across West Africa. An emerging El Nino pattern threatens to bring warmer and drier conditions to the region, potentially worsening black pod disease and reducing yield for upcoming harvests in both the Ivory Coast and Ghana.
Key points
- New York December cocoa futures closed unchanged, while London cocoa closed up 0.31 percent on Friday.
- Torrential rainfall in the Ivory Coast damaged infrastructure and delayed cocoa deliveries to ports.
- ICE cocoa inventories climbed to a 2.25-year high of 3,559,258 bags, placing downward pressure on prices.
- Reduced sales expectations from Lindt & Sprungli and losses at Cargill indicate weakening chocolate demand.
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How we writeDisclaimerQuestions and answers
Why did cocoa prices settle mixed on Friday?
Cocoa prices were split as gains driven by West African rain disruptions were offset by a stronger U.S. dollar and high inventory levels.
How are weather conditions affecting West African cocoa output?
Heavy rain in the Ivory Coast disrupted port deliveries, while an emerging El Nino pattern threatens future crop development across West Africa.
What factors are currently suppressing cocoa demand?
Weak consumer sentiment led chocolate maker Lindt & Sprungli to cut its sales growth forecast, while high bean costs created quarterly losses for processor Cargill.