Cocoa #7 Futures Market News and Commentary
Mar ICE NY cocoa (CCH20) on Friday closed down -38 (-1.37%), and Mar ICE London cocoa #7 (CAH20) closed down -23 (-1.17%).
Cocoa prices closed lower on Friday on signs of ample supplies after the International Cocoa Association (ICCO) said that results of its latest survey showed that global 2018/19 cocoa ending stocks have risen +1.4% y/y to 1.538 MMT.
Cocoa prices were already on the defensive on signs of increased cocoa production in Ghana after the Ghana Cocoa Board on Thursday reported that it purchased 569,781 MT of cocoa from farmers during Oct 1- Jan 2, up +8.4% y/y.
Another negative factor for cocoa is concern that high cocoa prices may be undercutting chocolate demand. Barry Callebaut, the world's largest cocoa-product maker, reported Wednesday that global chocolate volume growth was flat in the Sep-Nov period.
Cocoa prices have trended higher over the past month and NY cocoa posted a 20-1/2 month high Wednesday and London cocoa posted a 1-3/4 m... Read more