Cocoa Futures Market News and Commentary
March ICE NY cocoa (CCH23) on Friday closed up +40 (+1.64%), and December ICE London cocoa #7 (CAZ22) closed up +57 (+2.81%).
Cocoa prices Thursday closed moderately higher, with NY cocoa climbing to a 1-week high and London cocoa posting a 2-week high. A weaker dollar Friday (DXY00) sparked short covering in cocoa futures ahead of the weekend.
Cocoa prices have underlying support from a strike by dock workers in the Ivory Coast port of San Pedro, which could spread to other Ivory Coast ports, thus reducing global cocoa supplies. The strike has already disrupted the transportation of cocoa supplies from farms to ports in the Ivory Coast.
Another risk to global cocoa supplies is the standoff between the Ivory Coast cocoa regulator and the world's major cocoa buyers after a government-imposed premium made Ivory Coast cocoa supplies less competitive in the global market, which resulted in fewer forward-sales contracts. As a result, the Ivory Coast regulator has thr... Read more