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Cocoa Prices Hold Near $5,400

Grade Abearish AI signal
Cocoa futures are holding near $5,400 per tonne, close to their lowest levels since early October, as rising ICE warehouse inventories weigh on prices. Exchange-monitored inventories reached a 2.5-year high of 3.69 million bags, while Ivory Coast's current main crop remains adequately supported despite below-average rainfall. The longer-term supply outlook is tightening, with StoneX projecting 2026/27 global production to fall 9.6% to 4.74 million tonnes, potentially shifting the market from a 494,000-tonne surplus to a 64,000-tonne deficit. Rising inventories could maintain near-term selling pressure, while projected production declines and El Niño-related weather disruptions could support a longer-term cocoa price recovery.

Bullish strength: 40/100

  • StoneX projects global cocoa production to decline 9.6% in 2026/27.
  • Projected market conditions could shift from a 494,000-tonne surplus to a 64,000-tonne deficit.
  • Weather disruptions associated with El Niño could reduce output across major producing countries.

Bearish strength: 60/100

  • Cocoa futures remain near their lowest levels since early October.
  • ICE-monitored inventories reached a 2.5-year high of 3,688,949 bags.
  • Ivory Coast farmers report adequate conditions for the current main crop despite below-average rainfall.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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