Cocoa Futures Market News and Commentary
Mar ICE NY cocoa (CCH21) on Friday closed up +27 (+1.08%), and Mar ICE London cocoa #7 (CAH21) closed up +39 (+2.30%).
Cocoa prices on Friday posted moderate gains, with NY cocoa at a 1-week high and London cocoa at a 1-1/2 week high. Cocoa prices rallied Friday on better-than-expected global Q4 grinding data. Asia Q4 cocoa grindings fell -4.2% y/y to 217,546 MT, a smaller decline than expectations of -9% y/y. Also, North American Q4 cocoa processing unexpectedly rose +7% y/y to 118,043 MT, stronger than expectations of a decline of -2.5% y/y and the highest for a Q4 in 5 years. On Thursday, data showed that Malaysia's Q4 cocoa grindings fell -2.5% yy/ to 87.163 MT and that Malaysia's total 2020 cocoa grindings dropped -8.1% y/y to 315,911 MT.
Another positive for cocoa prices was news of stronger demand after Thursday's data from Ivory Coast's Gepex, a group of six of the world's biggest cocoa grinders, showed that Gepex Dec cocoa processing rose +3.7%... Read more