Cocoa #7 Futures Market News and Commentary
March ICE NY cocoa (CCH22) on Thursday closed up +101 (+4.29%), and March ICE London cocoa #7 (CAH22) closed up +44 (+2.68%).
Cocoa prices on Thursday closed sharply higher. An easing of omicron variant concerns sparked short-covering in cocoa futures Thursday after Pfizer said it expects its Covid vaccine to hold up to the omicron variant.
On Wednesday, cocoa prices had tumbled to 4-1/4 month lows on concern the new omicron Covid variant will spread globally and force countries into lockdowns that curb demand for commodities, including cocoa. Japan and Israel have already closed their borders to all foreign visitors, and other countries have imposed travel restrictions.
An improved outlook for West African cocoa crops is also bearish for cocoa prices. Recent surveys show cocoa farmers in the Ivory Coast and Ghana are optimistic about their crops as ideal weather with adequate rain in West Africa should boost the yields of the West African cocoa mid-crop, the s... Read more