Hedge funds have adopted a bearish stance on London cocoa for the first time in three years, reflecting expectations of stronger global supplies following a historic crunch in West Africa, according to a report by Bloomberg.

Money managers have also pared bullish bets on New York cocoa futures, as output is forecast to outpace consumption by roughly 186,000 tons in the 2025-26 season—more than double the surplus of the current season.

Speculators’ short positions in London cocoa now exceed longs by 2,776 contracts, while net-long positions in New York cocoa have fallen to the lowest level in over two years. Despite recent price falls of around 8% this month, cocoa remains historically expensive amid lingering production challenges in key West African growing regions.