February cocoa markets in Ghana saw prices retreat as main-crop arrivals swelled port stocks and softer overseas demand trimmed buying interest. Buyers hauled larger volumes to Tema while exporters cleared stocks, helping restocking conclude. European confectionery and chocolate buyers were subdued and Asian processors remained soft, with grinding activity flat year-on-year, leaving limited external bid support. Domestic grinders held steady but absorbed less than around 20% of the crop, so domestic demand offered only modest support. The result was a pronounced correction in the assessment window, with prices retreating by around 33% from the prior level. Supply-side dynamics kept flows rising as main-crop harvesting peaked early and dry-season access facilitated shipments to port, prompting exporters to lift spot offers. A financing line unlocked payments to farmers and cleared backlogs, boosting flows and inventories. While rising insurance and bunker costs weighed on logistics, easing supply conditions could cap further declines. Outlook remains near-term weak, with tightening expected later if demand improves.
