Cocoa prices rise again as supply risks return

Cocoa prices are moving higher again as weather conditions in West Africa raise concerns about another supply shortfall, according to a CNBC report published Monday. The move comes ahead of the Halloween season, when chocolate demand typically increases. New York cocoa futures ended Friday at $5,670 per metric ton after traders focused on supply risks. Goldman Sachs said a possible El Niño weather pattern could add pressure to an already fragile market, especially after earlyseason heavy rain was followed by unusually dry conditions. Analysts said inventories remain tight and the market may have less room to absorb a poor harvest than it did before the 2024 price surge. Even so, some market watchers said the futures market may be better able to handle shocks this time because it is less likely to face the same liquidity squeeze that helped drive the last spike. Chocolate makers are still feeling the effects of elevated cocoa costs. Companies including Lindt, Hershey, Barry Callebaut and Nestlé have already reported higher costs, softer demand or lower margins, while some have reduced cocoa use, changed recipes or expanded hedging and supply diversification efforts.