Cocoa prices plunge to 20-month low — but investment banks warn ‘extreme’ sell-off could create problems

Cocoa’s winning streak is faltering after prices fell to an almost two-year low this week — but investment banks are warning the commodity has become “extremely oversold.”

U.S. cocoa futures for December delivery moved 1.4% lower on Wednesday to trade at around $6,090 a ton, extending losses that saw the contracts lose 10% of their value in the week ended Oct. 3.

It marked a change in trajectory for cocoa, which has seen prices remain elevated for the past two years. U.S. futures hit a high of $12,931 in mid-December — but this week, prices touched on their lowest levels since early 2024.

It marked a change in trajectory for cocoa, which has seen prices remain elevated for the past two years. U.S. futures hit a high of $12,931 in mid-December — but this week, prices touched on their lowest levels since early 2024.

Challenging agricultural conditions, pest infestations and West African export controls have pushed the price of cocoa higher in recent years — but the upward trajectory came to a halt over the past week as governments in the Ivory Coast and Ghana hiked the minimum price payable to cocoa farmers.