Cocoa #7 Futures Market News and Commentary
Sep ICE NY cocoa (CCU20) on Wednesday closed down -48 (-2.23%). Sep ICE London cocoa #7 (CAU20) closed down -33 (-2.08%).
Cocoa prices on Wednesday extended their 2-week slide with NY cocoa at a contract low and London cocoa at a new 17-month low on ample cocoa supplies. The Ivory Coast government on Tuesday reported that Ivory Coast farmers sent 26,561 MT of cocoa to ports during Jun 29-July 5, up +53.9% y/y. Also, a total of 2.15 MMT of cocoa was sent to ports during Oct 1-Jul 5, up +0.9% y/y.
Cocoa prices have been on the defensive over the past two weeks as fund selling has driven cocoa prices lower on concern that the resurgence of the coronavirus will keep lockdowns in place for longer and curb chocolate demand. The consensus is for Q2 global cocoa grindings to decline as the pandemic decimated the demand for cocoa and cocoa products. European, Asian, and North American data for Q2 cocoa grindings are expected next week.
The outlook for robust cocoa suppli... Read more