Cocoa Prices Tumble on Demand Concerns | Barchart

As reported by Barchart, cocoa prices dropped significantly this morning due to worries that record-high prices might stifle global demand. May ICE NY cocoa (CCK24) fell -744 (-6.76%), and May ICE London cocoa #7 (CAK24) is down -559 (-6.09%).

This comes after a recent surge in cocoa prices to all-time highs due to supply concerns. The limited supply has driven cocoa grinders to scramble for beans, pushing prices even higher. However, the high prices may be backfiring, potentially leading to a decrease in demand.

Upcoming Q1 grinding reports from Asia, Europe, and North America are expected to shed light on this possibility. There is speculation that the reports will show a decline in cocoa demand due to the record-breaking prices.