Incoming arrivals and purchases data reflect expectations of a lower global production for the 2021/22 season. Inflation has taken a toll on the prices of farm inputs, resulting in a reduced usage of fertilizers and this, combined with less conducive weather conditions and diseases, has contributed to the downward trend observed in global cocoa production.

Cocoa demand has held up on multiple fronts despite rising input costs, including high energy costs alongside supply chain issues and increase in interest rates among others. Indeed, demand has thus far remained steady during the season and the reduction seen in global supply has to this point been less disruptive to the cocoa market. Yet still, it is worth noting that with the current slowdown in the global economy, cocoa demand is subject to many uncertainties.