Cocoa Futures Market News and Commentary
Sep ICE NY cocoa (CCU20) on Thursday closed up +10 (+0.46%). Sep ICE London cocoa #7 (CAU20) closed up +15 (+0.94%).
Cocoa prices on Thursday settled higher after an early decline in the dollar index to a 1-week low sparked short-covering in cocoa futures. On Wednesday, NY cocoa plunged to a 21-month low, and London cocoa dropped to a 17-month low. Fund selling has driven cocoa prices lower this week on concern that the resurgence of the coronavirus will keep lockdowns in place for longer and decimate chocolate demand.
The outlook for robust cocoa supplies is also weighing on cocoa prices. Citigroup last Thursday said the physical surplus for the Ivory Coast 2020/21 cocoa crop might be as large as 300,000 MT, double the previous projection of 150,000 MT. Also, Citigroup said Asian, North American, and European Q2 cocoa processing probably contracted on a year-on-year basis due to the coronavirus pandemic, and that U.S. chocolate sales in Q2 are on track to decline by 7... Read more