Cocoa Futures Market News and Commentary
Sep ICE NY cocoa (CCU21) on Monday closed up +71 (+3.06%), and Sep ICE London cocoa #7 (CAU21) closed up +42 (+2.64%).
Cocoa prices on Monday settled sharply high at 1-1/2 week highs. A weak dollar on Monday was a bullish factor for cocoa prices. Also, reduced weekly cocoa supplies from the Ivory Coast, the world's largest cocoa producer, were supportive of prices. The Ivory Coast government reported Monday that Ivory Coast farmers sent 9,944 MT of cocoa to ports the week ended July 25, less than half the 19,118 MT sent the same time last year. However, cumulative cocoa sent by farmers from Oct 1-July 25 totals 2.35 MMT, up +6.8% y/y.
An extreme short position in cocoa futures raises the risk of a short-covering rally after last Friday's weekly COT data showed that funds boosted their net-short NY cocoa position by 16,186 net-short positions in the week ended July 20 to 22,830, a 1-year high. Also, funds boosted their net London cocoa positions by 9,537 in the we... Read more