Cocoa #7 May '24 (CAK24)
Cocoa #7 Futures Market News and Commentary
May ICE NY cocoa (CCK26) on Wednesday closed down -80 (-2.25%), and May ICE London cocoa #7 (CAK26) closed down -56 (-2.14%).
Cocoa prices fell from 1.75-month highs on Wednesday and settled lower, as the recent rally has sparked hedge selling among cocoa producers and traders.  The Ivory Coast's Le Conseil du Café-Cacao cocoa regulator said Ivory Coast forward cocoa sales for the 2026/27 season have jumped to 800,000 MT so far this month, up sharply from 350,000 MT sold in March. Â
Cocoa prices surged on Tuesday in hopes of a demand recovery after Malaysia reported that Q1 cocoa grindings rose by +8.7% y/y to 91,946 MT. Â Q1 European, Asian, and North American cocoa grindings will be reported later this week. Â
The closure of the Strait of Hormuz is also supportive for cocoa prices as it has reduced fertilizer supplies, boosted global shipping rates, insurance costs, and fuel prices, thereby raising cocoa importers' costs.
An excessively short position by fun... Read more
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