Cocoa futures (CAN24) had an explosive 9.7% increase in the last week, and the most active contract is currently trading at 9,418. Chocolate factories reduced demand only by 2% in Europe in the first quarter relative to 2023, while a much bigger reduction was expected by the market to change the trend.
Meanwhile, in the U.S., chocolate processing grinds even increased production by 4%. Everybody tracking the cocoa demand side for a possible correction was puzzled by those figures released this week. The long-awaited correction looks very elusive in a market very inelastic to price increases.
