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Cocoa trading at 9618.260 USD/T on Thursday, June 19, a 5.528 USD/T (0.058%) increase from 9612.732 on the last trading session.
Several reports over the past week hint at increased cocoa smuggling, particularly out of Côte d’Ivoire, the world’s largest producer.
With global cocoa prices almost tripling since 2023, the incentive to bypass regulated farmgate prices has skyrocketed. The consequences of the illicit trade are significantly impacting cocoa futures markets by introducing both supply-side uncertainty and pricing distortion risks.
“Cocoa smuggling is a lucrative business and is happening on an increasing scale… smuggled into countries that offer much higher prices,” said Bloomberg’s Agnieszka de Sousa.
Reports of reduced supply at origin lead to lower official port arrivals in Côte d’Ivoire and Ghana, creating the illusion of more profound supply deficits.