Cocoa Futures Market News and Commentary
May ICE NY cocoa (CCK20) on Monday closed down -42 (-1.48%), and May ICE London cocoa #7 (CAK20) closed down -32 (-1.57%).
Cocoa prices retreated Monday with NY cocoa at a 2-1/2 week low. Ample cocoa supplies from the Ivory Coast, the world's biggest producer, are negative for cocoa prices. The Ivory Coast government on Monday reported that Ivory Coast farmers sent 37,128 MT of cocoa to ports from Feb 17-23, up +40% from the same time last year. On a cumulative basis, Ivory Coast farmers sent 1.61 MMT of cocoa to ports during Oct 1-Feb 23, up +8.8% y/y.
Another negative for cocoa prices is the forecast for rain in West Africa. A meteorologist at Marex Spectron on Monday said that average rainfall is forecast across West Africa through the middle of March.
NY cocoa last Tuesday climbed to a 3-1/2 year nearest-futures high, and London cocoa rose to a 2-1/4 month high on weather concerns in West Africa with above-average temperatures in Ghana. The seasonal Harmatta... Read more