Cocoa Futures Market News and Commentary
May ICE NY cocoa on Friday closed down -21 (-0.9%), and May ICE London cocoa #7 (CAK20) closed up +49 (+2.77%).
Cocoa prices on Friday settled mixed with London cocoa climbing to a 1-week high. NY cocoa moved lower on ample supplies and suspect demand. However, London cocoa gained on weakness in GBP/USD which fell -1.09% Friday to a 1-week low. A weaker pound boosts the price of cocoa that is priced in sterling.
NY cocoa earlier in the week on Wednesday fell to a 1-week low, and London cocoa fell to a 3-month low, on ample cocoa supplies. The Ivory Coast estimated Wednesday that its cocoa farmers delivered a record 1.76 MMT of cocoa in its 2019/20 main crop (Oct-Mar), up +5.4% y/y. Also, cocoa output in Ghana, the world's second-largest cocoa producer, is ample after the Ghana Cocoa Board reported Wednesday that it purchased 685,032 MT of cocoa from farmers during Oct 1-Mar 12, up +1.0% y/y.
The coronavirus pandemic is undercutting cocoa demand as the global loc... Read more