Cocoa Futures Ease from Record Levels

Cocoa futures eased to below $11,500 per tonne, amid some long liquidation pressure after a three-day rally that sent prices to a new record peak of $12,218 per tonne.

The price of cocoa has soared to record highs multiple times in recent months, with a year-to-date increase of over 150%, amid worries over shrinking West African supplies.

Cocoa harvests are coming up short for the third year in a row as above-average rain in key growing regions has resulted in more crop disease.

Simultaneously, there were signs of resilient demand even in the face of a global supply crunch.

Latest data showed that North American Q1 cocoa grindings rose +9.3% q/q and +3.7 % y/y to 113,683 MT, contrasting with expectations of a 8% drop.

Grinds fell only about 2% in Europe and edged down by 0.1% in Asia from a year ago in Q1, also better than market estimates.