Cocoa prices have tumbled to a 20-month low, bringing to an end a dramatic two-year rally that had driven the market to record highs and squeezed chocolate manufacturers worldwide.

New York cocoa has traded this week at about $6,150 a tonne — down from a December peak of above $12,000. Meanwhile, London prices, which had almost tripled in the opening months of last year, are now down about 58 per cent from their April 2024 peak at $4,262.

Analysts say the retreat reflects a drop-off in consumer demand as a result of the higher prices, as well as expectations of a better crop given improved weather and higher state-guaranteed prices in west Africa. In addition, speculators who had previously been riding the rally have more recently dumped their positions, with many now betting on falling prices.