By Joe Hoppe


Cocoa beans demand fell in Europe in the fourth quarter of 2024 and for the year as a whole, though it remains relatively stable, according to a report from the European Cocoa Association.

The number of grindings, or beans processed to be turned into chocolate, fell 5.4% on year in Europe in the fourth quarter to 331,853 metric tons, according to the ECA. Grind statistics are used as a proxy for cocoa demand, with Europe one of the world's largest markets for cocoa. For the full-year, cocoa usage fell 1.7%.

The ECA is a trade association grouping major companies involved in the bean trade and processing, warehousing and other logistical activities in Europe.

Cocoa futures closed Wednesday up 0.7% to $10,900 a metric ton, and have more than doubled on year. Cocoa hit an all-time high of $12,931 a ton in mid-December on fears of a supply shortage, before correcting back downward.

The International Cocoa Organization--a global body of cocoa producing and consuming countries--said in its latest report published December that supply risks continue to be the focus of market attention. Cocoa bean stocks at the London exchange fell 20% over November to 20,770 metrics tons, the ICO said.

Weather and crop diseases concerns in top producers Ivory Coast and Ghana have been compounded by the part roll-over of contracts ended in 2024 to the 2025 harvest season by the countries, raising concerns that the supply of cocoa is insufficient to cater for both contracts, the ICO added.

The price of cocoa has seen enormous volatility since reaching a record-high in mid-December, Commerzbank analysts said in a note. This has also been prompted by readjustments in the commodities indices at the beginning of the year, alongside extreme tightness in the market, including a decline in liquidity and increased susceptibility ti price fluctuations.


Write to Joe Hoppe at joseph.hoppe@wsj.com


(END) Dow Jones Newswires

01-16-25 0252ET