Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN21) on Monday closed up +46 (+1.96%), and July ICE London cocoa #7 (CAN21) closed up +13 (+0.81%).
Cocoa prices on Monday settled moderately higher after a weak dollar sparked some short-covering in cocoa futures. Cocoa prices also have underlying support from the improved pandemic statistics and hopes for stronger cocoa demand in the latter half of this year. Germany's Koch Institute health agency said daily Covid deaths in Germany dropped to 18 on Sunday, the fewest in 8 months. The 7-day average of new U.S. Covid infections on Friday fell to a 14-1/2 month low of 13,530.
Cocoa prices have recently seen weakness due to concern about abundant global cocoa supplies. The Ivory Coast government on Monday reported that cumulative cocoa bean deliveries to Ivory Coast ports during Oct 1-June 13 were up +8.7% y/y at 2.25 MMT. Also, the International Cocoa Organization (ICCO) on May 31 raised its global 2020/21 cocoa production estimate to a record 5.... Read more