Cocoa Mar '24 (CCH24)
Cocoa Futures Market News and Commentary
September ICE NY cocoa (CCU26) on Wednesday closed up +77 (+1.33%), and September ICE London cocoa #7 (CAU26) closed up +34 (+0.79%).
Cocoa prices settled higher on Wednesday as they consolidated below last week’s significant highs. Gains in London cocoa were limited on Wednesday due to the strength of the British pound (^GBPUSD). The pound rallied to a 7-week high on Wednesday, undercutting cocoa that is priced in sterling.
The cocoa market is looking ahead to Q2 quarterly cocoa grindings data on Thursday from Asia, Europe, and North America for clues on demand recovery. European Q2 grindings are expected to fall -1.5% y/y and North American grindings are expected to fall -1% y/y. However, Asian Q2 cocoa grindings are expected to jump +9% y/y, building on a Q1 recovery.Â
Cocoa prices have rallied sharply over the past month, with NY cocoa hitting a 6.25-month high and London cocoa hitting a 9.5-month high last Thursday. Heavy rains in the Ivory Coast and Ghana... Read more
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