Cocoa Jul '16 (CCN16)
Cocoa Futures Market News and Commentary
May ICE NY cocoa (CCK26) today is down -72 (-2.18%), and May ICE London cocoa #7 (CAK26) is down -47 (-1.90%).
Cocoa prices are falling today amid a stronger dollar ($DXY) and signs of abundant supplies after ICE cocoa inventories rose to a 20-month high of 2,632,357 bags on Monday.
Weakness in global cocoa demand is also bearish for prices. The National Confectioners Association reported last Thursday that North American Q1 cocoa grindings fell -3.8% y/y to 106,087 MT. Also, the European Cocoa Association reported 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. 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.
Weak signs of chocolate demand are negative for cocoa prices. Circana reported last Tuesday that chocolate candy sales in North Am... Read more
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