A deficit of around 100,000 tonnes is currently estimated for the 2022/23 season which just ended, according to a recent International Cocoa Organisation (ICCO report.
Says the report: “At this point last year, market participants had predicted a balanced situation for the season. But adverse weather conditions in Côte d’Ivoire and Ghana soon led to a change in these expectations.
“As cumulative port arrivals indicated that the market was heading towards a supply deficit, cocoa prices in real terms surpassed the levels recorded during the 2021/22 season . This, coupled with the news of an expected El Nino weather phenomenon, supported the rally of cocoa prices. So far, so good for some farmers and exporters, but not most of them.”