Cocoa Jul '15 (CCN15)
Cocoa Futures Market News and Commentary
May ICE NY cocoa (CCK26) on Friday closed down -181 (-5.38%), and May ICE London cocoa #7 (CAK26) closed down -104 (-4.17%).
Cocoa prices settled sharply lower on Friday for a second day on signs of weak global demand. Â The National Confectioners Association reported that North American Q1 cocoa grindings fell -3.8% y/y to 106,087 MT. Â The European Cocoa Association reported Thursday that Q1 European cocoa grindings fell -7.8% y/y to 325,895 MT, a bigger decline than expectations of -6% y/y and the lowest for a Q1 in 17 years. Â Conversely, the Cocoa Association of Asia reported that Q1 Asian cocoa grindings unexpectedly rose +5.2% y/y to 223,503 MT, stronger than expectations of a decline of -6.7% y/y.
The reopening of the Strait of Hormuz on Friday is also negative for cocoa prices, as a return to normal shipping flows should ease global cocoa supply concerns.
Weak signs of chocolate demand are bearish for cocoa prices. Â Circana reported Tuesday that chocolate can... Read more
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