Cocoa Mar '20 (CCH20)
Cocoa Futures Market News and Commentary
Dec ICE NY cocoa (CCZ19) on Wednesday closed up +42 (+1.60%), and Dec ICE London cocoa #7 (CAZ19) closed up +23 (+1.13%).
Cocoa prices rallied for a fourth day Wednesday with Dec NY cocoa at a 1-1/2 year nearest-futures high and Dec London cocoa at a 2-3/4 year nearest-futures high on signs of strength in global cocoa demand. Tuesday's data from Gepex, one of the world's six biggest cocoa grinding companies, showed Oct cocoa grindings rose +5.0% y/y to 47,444 MT.
Cocoa prices were already in rally mode on smaller cocoa supplies from the Ivory Coast, the world's biggest cocoa producer. Monday's data showed that Ivory Coast farmers sent 84,044 MT of cocoa to ports during Nov 4-10, down -3.8% from the year-earlier period, although total arrivals for the season beginning Oct 1 are up +6.0% y/y to 444,097 MT.
Crop concerns in Ghana are also supportive for cocoa prices as heavy rain in Ghana has undermined efforts to fight black-pod disease. Satellite imagery from the... Read more