Key Takeaways
- Cocoa prices are plummeting, heading for a record annual slump of approximately 50% in 2025, after a nearly threefold surge in 2024 that saw prices peak at almost $13,000 per tonne. High costs and reduced demand are driving this decline, with chocolate makers reporting significant sales drops and anticipating persistent high retail prices until at least late 2026.
- Eurostar has suspended all train services between London, Paris, Brussels, and Amsterdam due to a double technical incident in the Channel Tunnel involving a power supply problem and a stalled shuttle train. Passengers are advised to avoid stations, with the company offering free exchanges or refunds.
- Egypt has received a substantial $3.5 billion payment as part of a larger land deal with Qatari Diar, signaling a significant financial injection for the North African nation. This payment is an installment of a previously reported $29.7 billion investment by Qatari Diar in a major Egyptian Mediterranean project.
Cocoa Market Faces Historic Decline Amid Cooling Demand
The global cocoa market is experiencing a dramatic downturn, with prices set for a record annual slump of approximately 50% in 2025. This sharp decline follows a historic rally in 2024, where futures surged nearly threefold, reaching an unprecedented peak of almost $13,000 per tonne. Despite the significant drop, cocoa continues to trade around $6,000 a ton, still well above historical averages.
The primary drivers behind this slump are high costs and a noticeable cooling of demand. Chocolate makers are grappling with elevated cocoa inventories purchased during last year's price surge, which has forced many to adjust their strategies. Companies have resorted to changing recipes, reducing cocoa content, or shrinking portion sizes to manage soaring input costs.
Major chocolate producers are feeling the pinch. Barry Callebaut AG, one of the world's largest chocolate makers, has reduced its sales volume guidance for the second time in three months, citing persistent cocoa price volatility and reporting its largest quarterly decline in a decade. Hershey Co. (HSY) also reported a 14% drop in Q1 sales and anticipates $15-$20 million in tariff costs for Q2, which is expected to further inflate chocolate prices and dampen consumer demand. Similarly, Mondelez International (MDLZ) reported weaker-than-expected Q1 sales, attributing it to consumers cutting back on snack purchases due to economic uncertainty and high chocolate prices.
Price relief for consumers is not expected anytime soon, with industry executives warning that broad price cuts are unlikely before late 2026 due to ongoing market volatility and the need for producers to rebuild profitability. Structural issues in West Africa's cocoa farming, which supplies over 50% of global cocoa, remain unresolved, contributing to fragile supply conditions.
Weak global demand is evident in processing figures. European cocoa grindings fell by -7.2% year-on-year in Q2, while Asian grindings saw an even steeper decline of -16.3% year-on-year. North American Q2 cocoa grindings also decreased by -2.8%.
Eurostar Services Halted Across Key European Routes
Eurostar has announced the immediate suspension of all train services connecting London, Paris, Brussels, and Amsterdam. The widespread disruption stems from a double technical incident within the Channel Tunnel, involving a problem with the overhead power supply and the subsequent stalling of a Le Shuttle train.
The rail operator has advised all passengers to avoid traveling to stations and has offered options for free ticket exchanges, refunds, or vouchers for affected journeys. This incident has caused significant travel chaos for thousands of passengers across Europe, particularly impacting end-of-year travel plans.
Eurostar's official service updates confirm delays at major hubs including Paris Gare du Nord and Amsterdam Centraal, as well as between London St Pancras International and Lille-Europe, all attributed to the power supply issue. The current suspensions are part of broader operational restrictions impacting the Eurostar network, with cancellations noted between December 14, 2025, and January 4, 2026.
Egypt Secures $3.5 Billion in Qatari Diar Land Deal
Egypt has received a substantial $3.5 billion payment as part of a significant land deal with Qatari Diar, the real estate arm of the Qatar Investment Authority. This financial injection represents a crucial installment of a larger investment by Qatari Diar in Egypt.
The payment is linked to a previously reported $29.7 billion investment by Qatari Diar into a major Egyptian Mediterranean project. This substantial foreign investment is expected to bolster Egypt's economy and support large-scale development initiatives in the region.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.