Cocoa #7 Futures Market News and Commentary
Mar ICE NY cocoa (CCH21) on Friday closed down -21 (-0.82%), and Mar ICE London cocoa #7 (CAH21) closed down -8 (-0.46%).
Cocoa prices on Friday fell for the third day and posted 1-week lows. Cocoa prices continue to slide on concern that chocolate demand may suffer as a worsening of the pandemic forces countries to tighten and prolong lockdowns in an attempt to slow the spread of Covid. President Biden warned that the pandemic would worsen before it improves as the U.S. faces a "dark winter" where another 100,000 U.S. Covid deaths are expected over the next month.
Cocoa prices were already on the defensive from Wednesday when the European Cocoa Association reported that Q4 European cocoa grindings fell -3.1% y/y to 344,151 MT, a bigger decline than expectations of -1.5% y/y and the weakest report for a fourth-quarter in 4 years.
Slack U.S. chocolate demand is bearish for cocoa prices after data last Wednesday from researcher IRI showed U.S.... Read more