March ICE NY cocoa (CCH25) Friday closed down -1,141 (-11.33%), and March ICE London cocoa #7 (CAH25) closed down -605 (-7.64%).
Cocoa prices plunged Friday, with NY cocoa posting a 2-1/2 month low and London cocoa posting a 3-month low. Demand concerns are hammering cocoa prices after executives from chocolate makers Hershey and Mondelez recently warned that high prices were causing demand construction. On February 4, Mondelez executives warned of a potential slowdown in chocolate demand when CFO Zarmella said, "We are seeing signs, particularly in parts of the world like North America, where cocoa consumption is coming down." Also, on Tuesday, the company warned that chocolate prices could rise as much as 50% due to the surge in cocoa prices, which would curb chocolate demand. In addition, Hershey executives said on February 6 that high cocoa prices are forcing it to reformulate recipes by replacing cocoa with other ingredients.
