Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN20) on Tuesday closed down -91 (-3.65%). July ICE London cocoa #7 (CAN20) closed down -59 (-3.01%).
Cocoa prices on Tuesday fell sharply with London cocoa at a 4-week low. Ample supplies from the Ivory Coast undercut cocoa prices after the Ivory Coast government on Tuesday reported that Ivory Coast farmers sent 29,918 MT of cocoa to ports during May 25-31, unchanged from a year earlier, shaking off the potential for pandemic-related disruptions. However, longer-term deliveries are bearish with Ivory Coast cocoa farmers delivering 2.01 MMT of cocoa during Oct 1-May 31, up +0.5% y/y.
Another bearish factor for cocoa was adequate rainfall in West Africa that should boost cocoa yields. Satellite imagery from the U.S. Climate Prediction Center on Tuesday showed normal to above-average rainfall across most of the Ivory Coast and Ghana during May 24-30.
London cocoa on Tuesday was undercut by strength in the British pound as GBP/USD rose to a 4-we... Read more