Cocoa #7 Futures Market News and Commentary
March ICE NY cocoa (CCH22) on Friday closed down -84 (-3.16%), and March ICE London cocoa #7 (CAH22) closed down -21(-1.19%).
Cocoa prices on Friday fell sharply after an unexpected drop in North American cocoa demand. The National Confectioners Association reported late Thursday that North American Q4 cocoa grindings unexpectedly fell -1.2% y/y to 116,614 MT, much weaker than expectations of a +4.6% y/y increase.
London cocoa was also under pressure this week on concern a worsening pandemic in Europe may lead to travel restrictions that may curb chocolate demand. Germany on Thursday reported a record 133,536 new Covid infections.
Signs of strength in global cocoa demand had pushed NY cocoa prices up to a 3-1/4 month high Thursday. The European Cocoa Association on Wednesday reported Q4 European cocoa processing rose +6.3% y/y to 365,826 MT, stronger than expectations of +6.0% y/y. Total 2021 European cocoa processing rose +6.1% y/y to 1.46 MMT, the highest s... Read more