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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/cocoa-market-trends-ease-amid-tariff-uncertainty/
In March 2025 market activity, cocoa prices remained range bound as traders adapted to evolving supply and trade dynamics.
In London, the front month contract averaged US$8,100 per tonne, fluctuating between US$7,844 and US$8,326, while the New York market saw an average price of US$8,055 per tonne with trading between US$7,728 and US$8,415. Notably, market patterns shifted from a premium last year to a consistent discount on the nearby contract, suggesting that tight supply conditions had eased compared to March 2024.
Market participants noted that, although early reports had raised concerns regarding Côte d’Ivoire’s mid-crop due to delayed rains, production forecasts for other major cocoa-producing countries offered a counterbalance that kept prices steady. As weather conditions gradually improved in Côte d’Ivoire and production in other regions recovered, the anticipated shortfall appeared less damaging than earlier feared.
Industry observers also focused on recent developments in US trade policy, which introduced a universal export tariff of 10%. The policy, accompanied by varied adjustments for ICCO member countries, stirred uncertainty among trading circles.
Despite the implementation of a temporary 90-day pause for all but China, anticipatory measures and recalculated tariff scenarios have underscored a period of heightened caution. Meanwhile, stock levels at ICE Futures have seen a marked increase, with London inventories rising by 68 percent and New York stocks expanding by 25 percent over the month.
The steady prices against a backdrop of increased stocks and shifting trade measures reflect a market in careful recalibration. This nuanced adjustment underscores the interplay of production forecasts, weather dependencies, and evolving trade regulations.
The current market environment suggests that while immediate supply concerns have largely subsided, the looming impact of policy changes and volatile weather remains a critical factor for stakeholders. Subtle yet significant, these dynamics offer insights into both short-term stability and future challenges as the cocoa market adapts to a new phase of global trade and production realities.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/cocoa-market-trends-ease-amid-tariff-uncertainty/
