Cocoa Prices Dip Amidst Supply Surge, Tariff Changes

Cocoa prices experienced a minor dip on Wednesday, but remained above their recent low points following the European Parliaments decision to postpone the EUDR law by a year. This law, designed to prevent deforestation in cocoa-exporting countries, was delayed, allowing continued imports from regions in Africa, Indonesia, and South America, potentially reducing prices.Additionally, a promising cocoa harvest is expected in West Africa, with healthy cocoa trees in Ivory Coast and favorable weather conditions in Ghana. The Trump administrations decision to drop tariffs on commodities not grown in the US, including cocoa, and reduce tariffs on food imports from Brazil, another top cocoa producer, could further lower prices.However, recent data indicates a slight decrease in cocoa arrivals at Ivory Coast ports and a low inventory of cocoa in US ports, which could support prices.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.