Cocoa Jul '13 (CCN13)
Cocoa Futures Market News and Commentary
September ICE NY cocoa (CCU26) on Thursday closed down -56 (-1.10%), and September ICE London cocoa #7 (CAU26) closed down -71 (-1.86%).
Cocoa prices settled lower on Thursday amid some pre-weekend liquidation and position squaring, as US markets will be closed on Friday for a holiday. Losses in London cocoa accelerated on Thursday after the British pound (^GBPUSD) rose to a 2-week high. The stronger pound undercuts cocoa priced in sterling.
Rising cocoa inventories are also weighing on prices. ICE cocoa inventories rose to a 1.75-year high of 3,017,796 bags on Wednesday.
Cocoa prices have rallied sharply over the past two weeks, rising by more than 20% and hitting 5.5-month highs last Thursday. Concerns about the upcoming West African cocoa crop pushed prices sharply higher. Heavy rains in the Ivory Coast and Ghana have flooded roads and cut off farmers’ access to farms and ports, threatening global supplies. Accumulated June rainfall through last Monday has... Read more
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