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

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.