Malaysia-based Yuan Zong Group, Asia's largest cocoa processor, said a
strengthening El Nifio threatens output in major cocoa-producing regions and
could create a 300,000–400,000 tonne global supply gap in the 2026-27 season,
reversing an approximate 100,000-tonne surplus a year earlier. Cocoa futures
have risen for six months and this week hit their highest level since October;
Yuan Zong said tighter supply should further support prices and CEO Tay forecast
December futures could reach about $8,000/ton from roughly $6,500/ton currently.
Weather-driven supply risk is expected to coincide with stable demand.
