Cocoa Futures Market News and Commentary
Dec ICE NY cocoa (CCZ21) on Tuesday closed down -51 (-1.95%), and Dec ICE London cocoa #7 (CAZ21) closed down -33 (-1.82%).
Cocoa prices on Tuesday settled moderately lower, with NY cocoa at a 2-month nearest-futures low and London cocoa at a 3-week low. Cocoa prices have been undercut by weaker-than-expected demand. Last Friday, Q3 Asian cocoa grindings rose +4.1% y/y to 210,970 MT, below expectations of +5.5% y/y. Last Thursday, the North American Confectioners Association reported Q3 North American cocoa grindings rose +4.3% y/y to 123,399 MT, below expectations of +6.6% y/y. Conversely, the European Cocoa Association reported last Wednesday that European Q3 cocoa processing rose +8.7% y/y to 375,811 MT, above the consensus of +5.8% y/y.
On Aug 31, the International Cocoa Organization (ICCO) raised its global 2020/21 cocoa production estimate to a record 5.14 MMT from a previous estimate of 5.02 MMT and raised its global 2020/21 cocoa surplus estimate to 230,00... Read more