Cocoa futures dropped to their lowest level in two years in London, following a disappointing European processing report. The decline reflects a sharp pullback in demand after the market endured record-high prices for much of the past year. Processors ground the fewest cocoa beans since 2013.

This slump signals that the chocolate industry is still reeling from the historic price surge that peaked earlier this year. With raw material costs finally easing, manufacturers are likely adjusting their purchasing strategies. The question now is whether this represents a temporary pause or a sustained shift in buying patterns.

Looking ahead, the market will watch for signs of demand recovery in key regions. European processing figures serve as a leading indicator for global cocoa consumption. If grinding volumes remain depressed, it could pressure prices further, even as supply concerns from West Africa persist.