Cocoa #7 Futures Market News and Commentary
Sep ICE NY cocoa (CCU21) on Thursday closed up +8 (+0.33%), and Sep ICE London cocoa #7 (CAU21) closed down -9 (-0.54%).
Cocoa prices on Thursday settled mixed, with NY cocoa at a 1-1/2 month high. A weaker dollar on Thursday benefitted NY cocoa prices, while a rally in the British pound (^GBPUSD) to a 1-month high Thursday undercut London cocoa prices.
Cocoa prices have pushed higher this week as signs of reduced weekly cocoa supplies from the Ivory Coast, the world's largest cocoa producer, have sparked fund short-covering. The Ivory Coast government reported Monday that Ivory Coast farmers sent 9,944 MT of cocoa to ports the week ended July 25, less than half the 19,118 MT sent the same time last year. However, cumulative cocoa sent by farmers from Oct 1-July 25 totals 2.35 MMT, up +6.8% y/y.
An extreme short position in cocoa futures raised the risk of a short-covering rally after last Friday's weekly COT data showed that funds boosted their net-short NY... Read more