Cocoa Futures at 1-Month High

Cocoa prices rose further to around $5,800 a tonne, their highest level since mid-September, supported by weather-related supply concerns. Local reports indicated that heavy rainfall in the Ivory Coast, the world’s largest cocoa producer, had disrupted harvesting and delayed bean deliveries to ports, limiting near-term availability. However, both the Ivory Coast and Ghana have received below-average rainfall in recent months, raising the risk of stress on the next crop. Local farmers are concerned about the size and quality of the next cocoa crop, which is expected to be harvested from early 2027. The possible strengthening of El Niño adds to these concerns, as it could bring hotter, drier weather to West Africa and increase the risk of heavy rain and flooding in parts of Latin America, including Ecuador. Meanwhile, third-quarter cocoa-grinding data from Europe and North America, due on October 15, will provide further insight into demand.