Cocoa #7 Futures Market News and Commentary
May ICE NY cocoa (CCK21) on Friday closed down -1 (-0.04%), and May ICE London cocoa #7 (CAK21) closed down -43 (-2.62%).
Cocoa prices on Friday moved lower, with NY cocoa falling to a 5-month low and London cocoa falling to a 4-month nearest-futures low. The outlook for bumper cocoa crops in West Africa undercut cocoa prices and fueled fund selling in cocoa futures. Cocoa farmers in the Ivory Coast and Ghana are reporting favorable growing conditions that bode well for the mid-crop harvest that just began.
Cocoa supplies are ample from the Ivory Coast, the world's largest cocoa producer. The Ivory Coast government reported Thursday that cumulative cocoa bean deliveries to Ivory Coast ports during Oct 1-Apr 4 were unchanged y/y at 1.78 MMT. Also, current inventories are abundant after ICE-monitored cocoa inventories climbed to a 1-3/4 year high on Friday.
Demand concerns are also weighing on cocoa prices. Chocolate demand in Europe may suf... Read more