September ICE NY cocoa (CCU24) on Wednesday closed down -79 (-0.97%), and September ICE London cocoa #7 (CAU24) closed down -25 (-0.37%).
Cocoa prices on Wednesday fell moderately due to concern that recent record-high cocoa prices will lead to demand destruction. The consensus is that Thursday's quarterly report from the European Cocoa Association will show European Q2 cocoa grinding fell -2% y/y to a 4-year low. Q2 Asian and North American cocoa grindings are also expected to decline when reported next week. Also, Chocolate producer Nestle SA predicted on June 19 that consumers would cut back on chocolate purchases as the recent historic rally in cocoa prices gradually trickles down to manufacturers and forces them to raise prices.
