Cocoa Futures Market News and Commentary
May ICE NY cocoa this morning is down -12 (-0.53%), and May ICE London cocoa #7 (CAK20) is down -10 (-0.57%).
Cocoa prices this morning are lower with London cocoa at a new 3-month low on ample cocoa output in Ghana, the world's second-largest cocoa producer. The Ghana Cocoa Board reported today that it purchased 685,032 MT of cocoa from farmers during Oct 1-Mar 12, up +1.0% y/y.
The coronavirus pandemic is undercutting cocoa demand as the global pandemic-lockdown of millions of people curbs demand for chocolate and other cocoa products. Also, cocoa processing demand in Q1 may decline as many cocoa grinders see pandemic-related business disruptions.
Cocoa supplies are ample after Monday's news that Ivory Coast farmers sent 1.754 MMT of cocoa to ports during Oct 1-Mar 29, up +5.9% y/y.
Another bearish factor for cocoa prices is abundant rainfall in West Africa that may boost cocoa yields. Monday's data from the U.S. Climate Prediction Center showed above-a... Read more