European cocoa grindings – a good proxy for demand in the world’s largest cocoa-processing region – fell 5.7% in Q2, much greater than industry expectations of a modest decline of around 0.7-1.0%, according to data released by the European Cocoa Association. Traders and retailers have told Mintec in recent weeks that sales remain consistent but not above pre-pandemic levels. Q2 grindings in Asia and North America are due on 20th July, with the Asian report also highly anticipated.
Even before the most recent European grindings figures, prices on the ICE futures contract in London had already retreated by over £300/tonne since the high on 3rd July, when the JUL-23 contract closed at the highest price level since September 1977. Just today (13th July), the SEP-23 contract has fallen from an open of £2,536/mt to last trade at £2,472/mt, a decline of 2.5% as of the time of publication. The New York futures market has also seen some easing on the SEP-23 contract, but not as much as in London.
This decline since 3rd July has also been reflected in physical product pricing, with the Mintec Benchmark Price (MBP) for spot Cocoa Butter price EXW Western Europe [Series Code: COBS] assessed on Wednesday, 12th July at €6,950/mt, a drop of 4.6% compared to the previous week.
