Cocoa #7 Futures Market News and Commentary
Dec ICE NY cocoa (CCZ23) on Friday closed -41 (-1.19%), and Dec ICE London cocoa #7 (CAZ23) closed -29 (-0.97%).
Cocoa prices Friday closed moderately lower, with London cocoa falling to a 3-week low. An improved outlook for the Ivory Coast's main crop is weighing on cocoa prices. The crop outlook improved on reports from Ivory Coast farmers that recent rain has produced new flowers and pods on cocoa plants.
Increased cocoa supplies from Nigeria, the world's fifth-largest cocoa bean producer, are bearish for prices after Nigeria's Aug cocoa exports rose +29.6% y/y to 14,025 MT.
An excessive long position of NY cocoa futures by funds could fuel long liquidation pressures after last Friday's weekly Commitment of Traders report showed funds increased their net long NY cocoa positions by 559 in the week ended September 19 to 79,541, a 9-year high.
Tightness in cocoa supplies supports prices as ICE-monitored cocoa inventories held in U.S. ports have decl... Read more